Minutes — Cloverdale City Council, April 12, 2023 (part 1 of 2)

City Council Minutes - April 12, 2023 - Page 1 of 6
124 N. Cloverdale Boulevard
Cloverdale, CA 95425
Phone: 707-894-2521
www.cloverdale.net

MINUTES - FINAL

REGULAR MEETING OF THE CITY COUNCIL AND JOINT MEETING OF THE CLOVERDALE COMMUNITY

DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS
WEDNESDAY, APRIL 12, 2023
CLOSED SESSION 5 PM | OPEN SESSION 6 PM

CLOVERDALE PERFORMING ART CENTER
209 N. CLOVERDALE BOULEVARD, CLOVERDALE, CA 95425

CLOSED SESSION
OPENING CLOSED SESSION:

Call to Order - Mayor Lands called the meeting to order at 5 p.m.

Roll Call - Present - Mayor Lands, Vice Mayor Wolter, Councilmembers: Morgenstern, Wheeler Absent - Councilmember Bagby.

Closed Session Agenda Review (Changes and/or Deletions) - None.

PUBLIC COMMENTS ON CLOSED SESSION AGENDA:

None.

RECESS TO CLOSED SESSION TO HEAR THE FOLLOWING ITEM(S):

Mayor Lands recessed to closed session at 5:00 p.m.

Councilmember Bagby joined closed session at 5:04 p.m.

CLOSED SESSION ITEM 1:

CONFERENCE WITH REAL PROPERTY NEGOTIATORS: Pursuant to Government Code Section 54956.8
Property: APN: 117-040-070
Property Owner: County of Sonoma
Negotiating Parties:

For City: City Attorneys Jose Sanchez and Alex Mog, City Manager Kelley and Assistant City Manager Thompson
For Sonoma County: Jeremy Fonseca , County Counsel’s Office Under negotiation: Price and Terms
Action: Item was received and filed.

City Council Minutes - April 12, 2023 - Page 2 of 6
CLOSED SESSION ITEM 2:

CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION: (Pursuant to Section 54956.9(d)(1) of the Government Code).

Name of Case: Carol Spingler v. City of Cloverdale
Superior Court of California, County of Sonoma
Case No.: SCV 272896
Action: Item was received and filed.

CLOSED SESSION ITEM 3:

CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION: (Pursuant to Section 54956.9(d)(1) of the Government Code).

Name of Case: City of Cloverdale v. Cort Amelung
Superior Court of California, County of Sonoma
Case No.: MCV 260528
Action: Item was received and filed.

Mayor Lands adjourned Closed Session at 5:52 p.m.

OPEN SESSION
A. OPENING PUBLIC SESSION
Call to Order - Mayor Lands called the meeting to order at 6:07 p.m.

Pledge of Allegiance - Mayor Lands led the pledge of allegiance.

Roll Call - Present: Mayor Lands, Vice Mayor Wolter, Councilmembers: Bagby, Morgenstern, Wheeler - Absent: None.

Report Out on Closed Session - None.

Conflict of Interest Declaration - None.

Agenda Review (Changes and/or Deletions) - None.

B. PUBLIC COMMENTS:

Mr. Greene spoke on the Rotary Peace Flag installation and requested additional public discussion.

Mr. Duarte spoke on a previously reported Code Enforcement issue and Mayor Lands responded.

C. COMMUNICATIONS
None.

D. PROCLAMATIONS/PRESENTATIONS
D.1 Proclamation - Week of the Young Child
Councilmember Wheeler presented the proclamation.

D.2 Proclamation - Dispatchers Week
City Manager Kelley presented the proclamation and Councilmembers provided comment.

City Council Minutes - April 12, 2023 - Page 3 of 6
D.3 Proclamation - Sexual Assault Awareness Month
Councilmember Morgenstern presented the proclamation to Lisa Diaz McQuaid accepted the proclamation as Verity's Lead Human Trafficking Caseworker.

D.4 Presentation - Student Liaison Report
Student Liaison Garcia reported.

E. CONSENT CALENDAR:

Action: A motion was made by Councilmember Bagby, seconded by Vice Mayor Wolter, to waive reading of the text and adopt the Consent Calendar.

The motion carried by the following vote:

Yes (5) - Mayor Lands, Vice Mayor Wolter, Councilmembers: Bagby, Morgenstern, Wheeler No (0) - None.

Absent (0) - None.

Abstain (0) - None.

E.1 Minutes Approval - March 22, 2023
Action: Approved as submitted.

E.2 Minor Construction Agreement with PumpMan Norcal for Well 6 pump repair services for the City of Cloverdale Water Treatment Plant
Action: Resolution was adopted.

RESOLUTION NO. 029-2023 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE APPROVING A MAINTENANCE AGREEMENT FOR WELL 6 PUMP REPAIR & INSTALLATION WITH PUMPMAN NORCAL IN THE AMOUNT OF $28,480.93, A 15% PROJECT CONTINGENCY AND A TOTAL PROJECT BUDGET NOT TO EXCEED $32,753.06 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE MAINTENANCE AGREEMENT.

E.3 Resolution amending the budget to increase the budgeted amount for Coastland Engineering Inc. for the building permit services
Action: Resolution was adopted.

RESOLUTION NO. 030-2023 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CLOVERDALE APPROVING A BUDGET AMENDMENT ADDING AN ADDITIONAL $200,000 NEEDED TO CONTINUE COASTLAND CIVIL ENGINEERING AND BUILDING PERMIT SERVICES.

E.4 Acceptance of Fee Simple Title To The Lyda Ranch Real Property (APNs: 115-220-006 & - 007) From, And Granting A Conservation Easement To, The Sonoma County Agricultural Preservation And Open Space District
City Council Minutes - April 12, 2023 - Page 4 of 6
Action: Resolution was adopted.

RESOLUTION NO. 031-2023 ENTITLED: RESOLUTION OF THE CLOVERDALE CITY COUNCIL ACCEPTING FEE SIMPLE TITLE TO THE LYDA RANCH REAL PROPERTY (APNS: 115-220-006 & -007) FROM, AND GRANTING A CONSERVATION EASEMENT TO, THE SONOMA COUNTY AGRICULTURAL PRESERVATION AND OPEN SPACE DISTRICT; AUTHORIZING EXECUTION OF A DEED AND AGREEMENT; ADOPTING FINDINGS AND AUTHORIZING THE CITY MANAGER TO TAKE FURTHER NECESSARY ACTIONS IN CONNECTION THEREWITH.

E.5 Budget Amendment for the Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for the replacement of the Southcrest Reservoir
Action: Resolution was adopted.

RESOLUTION NO. 032-2023 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE APPROVING A FY 2022-23 BUDGET AMENDMENT FOR THE PROFESSIONAL SERVICES AGREEMENT WITH WEST YOST & ASSOCIATES, INC. TO PREPARE A WATER

SYSTEM HYDRAULIC EVALUATION FOR REPLACEMENT OF THE SOUTHCREST RESERVOIR APPROVED ON JANUARY 11, 2023 IN THE AMOUNT OF $77,700.

F. PUBLIC HEARINGS
None.

G. NEW BUSINESS
G.1 Presentation and acceptance of the FY 2021/22 City of Cloverdale Audited Financial Statements
Finance Director Holmes introduced the item and Consultant Cropper presented.

Staff and the Consultant responded to Councilmember inquiries and comments.

Action: A motion was made by Councilmember Bagby, seconded by Councilmember Wheeler, to accept the Financial Statement as presented.

The motion carried by the following vote:

Yes (5) - Mayor Lands, Vice Mayor Wolter, Councilmembers: Bagby, Morgenstern, Wheeler No (0) - None.

Absent (0) - None.

Abstain (0) - None.

Action: A motion was made by Councilmember Bagby, seconded by Councilmember Morgenstern, to waive reading of the text and adopt:

RESOLUTION NO. 033-2023 ENTITLED: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE AMENDING THE CURRENT STAGE 3 WATER SHORTAGE EMERGENCY TO A STAGE 1 WATER SHORTAGE EMERGENCY REQUIRING VOLUNTARY WATER CONSERVATION PURSUANT TO CHAPTER 13.05 “CONSERVATION OF WATER SUPPLY” OF THE CLOVERDALE

MUNICIPAL CODE AND TERMINATING THE PREVIOUSLY ENACTED WATER SHORTAGE SURCHARGE PURSUANT TO CLOVERDALE MUNICIPAL CODE SECTION 13.05.070.

The motion carried by the following vote:

Yes (5) - Mayor Lands, Vice Mayor Wolter, Councilmembers: Bagby, Morgenstern, Wheeler No (0) - None.

Absent (0) - None.

Abstain (0) - None.

H. SUBCOMMITTEE REPORTS
Subcommittee Agendas, Approved Minutes, and Media are available at www.cloverdale.net/agendacenter
Finance, Administration & Police: Chair Lands reported.

Last Meeting Agenda | Next Meeting - May 1, 2023
Planning & Sustainability: Chair Bagby reported.

Last Meeting Agenda | Next Meeting - April 18, 2023
Public Works & Facilities: Chair Wolter reported.

Last Meeting Agenda | Next Meeting - April 25, 2023
Joint City/Cloverdale Unified School District: Chair Lands reported.

Last Meeting Agenda | Next Meeting - April 17, 2023
Homelessness Community Advisory Group: Chair Wheeler reported.

Last Meeting Agenda | Next Meeting - June 12, 2023
I. COUNCILMEMBER REPORTS
None.

J. INFORMATIONAL REPORTS
None.

City Council Minutes - April 12, 2023 - Page 6 of 6
K. LEGISLATIVE REPORTS, LETTERS OF SUPPORT/OPPOSITION
K.1 Letter of Support - Federal Transit Grant
City Manager Kelley reported.

L. CITY MANAGER/CITY ATTORNEY REPORT(S)
None.

M. STATUS UPDATES
CURRENT IMPACTS TO WATER SUPPLY - None.

COVID-19 EMERGENCY - None.

N. COUNCIL DIRECTION ON FUTURE AGENDA ITEMS
Meter discussion.

O. ADJOURNMENT
Mayor Lands adjourned the meeting at 7:12 p.m. to the next regular meeting of the City Council scheduled for April 26, 2023.

Approved On: April 26, 2023
_________________________________
Mike Maloney, City Clerk
124 N. Cloverdale Boulevard
Cloverdale, CA 95425
Phone: 707-894-2521
www.cloverdale.net
CLOSED SESSION: 5 PM

THIS PORTION OF THE MEETING IS CLOSED TO THE PUBLIC
OPEN SESSION: 6 PM

THIS PORTION OF THE MEETING IS OPEN TO THE PUBLIC
PUBLIC PARTICIPATION:

The City Council welcomes public interest, attendance, and participation at meetings.

Attendees may join open session both in-person at theCloverdale Performing Arts Center, 209 N. Cloverdale Blvd, virtually at www.zoom.us/join, or by telephone: 1.669.900.6833, both using Meeting ID: 823 1668 4527; or directly online at https://us02web.zoom.us/j/82316684527.

Public Session meetings are also streamed on YouTube via live webcast at cloverdale.net/youtube.

Effective March 1, 2023, if a technical issue arises with Zoom or the phone dial-in option, the meeting will continue unless it is being held pursuant to the provisions of Assembly Bill 2449.

Members of the public may provide comment on an agenda item in-person or online via Zoom during the public comment periods. Zoom attendees will be muted until they are called upon by the Mayor or City Clerk. To make a public comment on Zoom, use the raise hand icon, or dial *9 if you are calling in. Please state your name for the record. Once you start, you will have three (3) minutes to speak. Please note the City Council is unable to respond directly to questions or enter into dialogue with commenters. Written comments may alternatively be submitted prior to the meeting via email to the City Clerk at [email protected]. Please note, all written comments received are considered public records and subject to disclosure under the California Public Records Act.

COUNCILMEMBER PARTICIPATION:

Councilmembers participate in person or teleconference methods consistent with traditional provisions of the Brown Act, unless the meeting is being held pursuant to provisions of Assembly Bill 2449.

The City Council may recess for breaks and agenda items may be taken out of order.

AGENDA

REGULAR MEETING OF THE CITY COUNCIL AND JOINT MEETING OF THE CLOVERDALE COMMUNITY

DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS
WEDNESDAY, APRIL 12, 2023

CLOVERDALE PERFORMING ART CENTER
209 N. CLOVERDALE BOULEVARD, CLOVERDALE, CA 95425
1 CLOSED SESSION
OPENING CLOSED SESSION:

Call to Order
Roll Call
Closed Session Agenda Review (Changes and/or Deletions) PUBLIC COMMENTS ON CLOSED SESSION AGENDA:

Prior to recessing into Closed Session, the public may speak on items to be addressed in Closed Session. Per City Council Policy, three minutes are allotted to each speaker.

RECESS TO CLOSED SESSION TO HEAR THE FOLLOWING ITEM(S):

OPEN SESSION
A. OPENING PUBLIC SESSION
Call to Order
Pledge of Allegiance
Roll Call
Report Out on Closed Session
Conflict of Interest Declaration
Agenda Review (Changes and/or Deletions)
CLOSED SESSION ITEM 1:

CONFERENCE WITH REAL PROPERTY NEGOTIATORS: Pursuant to Government Code Section 54956.8 Property: APN: 117-040-070
Property Owner: County of Sonoma
Negotiating Parties:

CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION: (Pursuant to Section 54956.9(d)(1) of the Government Code).

Name of Case: Carol Spingler v. City of Cloverdale
Superior Court of California, County of Sonoma
Case No.: SCV 272896
CLOSED SESSION ITEM 3:

CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION: (Pursuant to Section 54956.9(d)(1) of the Government Code).

Name of Case: City of Cloverdale v. Cort Amelung
Superior Court of California, County of Sonoma
Case No.: MCV 260528
2 B. PUBLIC COMMENTS:

Any person wishing to speak to the City Council on any item not listed on the agenda may do so at this Fme.

Members of the public have the right to speak on any item on the Council Agenda at the Fme the item comes up for consideration. Pursuant to the Brown Act, the City Council is not allowed to consider issues or take action on any item not listed on the agenda. Three minutes are typically allotted to each speaker.

C. COMMUNICATIONS
Council may discuss at this Fme wriGen communications sent to Councilmembers since the last council meeFng.

Written communications to be discussed will be listed below, if any.

D. PROCLAMATIONS/PRESENTATIONS
D.1 Proclamation - Week of the Young Child
D.2 Proclamation - Dispatchers Week
D.3 Proclamation - Sexual Assault Awareness Month
D.4 Presentation - Student Liaison Report
E. CONSENT CALENDAR:

All items under the Consent Calendar will be considered together by one acFon of the City Council unless any Councilmember or member of the public requests that an item be removed and considered separately.

E.1 Minutes Approval - March 22, 2023
Recommended Action(s):

Approve the March 22, 2023 Draft Minutes
E.2 Minor Construction Agreement with PumpMan Norcal for Well 6 pump repair services for the City of Cloverdale Water Treatment Plant
Recommended Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Approving a Maintenance Agreement for Well 6 pump Repair & Installation with PumpMan Norcal in the amount of $28,480.93, a 15% project contingency and a total project budget not to exceed $32,753.06 and authorizing the City Manager to execute the Maintenance agreement." E.3 Resolution amending the budget to increase the budgeted amount for Coastland Engineering Inc. for the building permit services
Recommended Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Approving a Budget Amendment Adding an Additional $200,000 needed to continue Coastland Civil Engineering Proclamation - Week of the Young Child
Proclamation - Dispatchers Week 2023
Proclamation - Recognizing April 2023 Sexual Assault Awareness Month March 22, 2023 - Draft Minutes
Agenda Report
Attachment 1 - Resolution
Attachment 2 - Exhibit A - Proposal
3 building permit services”.

E.4 Acceptance of Fee Simple Title To The Lyda Ranch Real Property (APNs: 115-220-006 & -007) From, And Granting A Conservation Easement To, The Sonoma County Agricultural Preservation And Open Space District
Recommended Action(s):

Adopt a Resolution Entitled, “A Resolution Of The Cloverdale City Council Accepting Fee Simple Title To The Lyda Ranch Real Property (APNs: 115-220-006 & -007) From, and Granting a Conservation Easement to, The Sonoma County Agricultural Preservation and Open Space District; Authorizing Execution of a Deed and Agreement; Adopting Findings and Authorizing The City Manager to Take Further Necessary Actions In Connection Therewith."
E.5 Budget Amendment for the Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for the replacement of the Southcrest Reservoir Recommended Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Approving a FY 2022-23 Budget Amendment for the Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for replacement of the Southcrest Reservoir approved on January 11, 2023 in the amount of $77,700.” F. PUBLIC HEARINGS
G. NEW BUSINESS
G.1 Presentation and acceptance of the FY 2021/22 City of Cloverdale Audited Financial Statements Recommended Action(s):

Review and accept by motion the FY 2021/22 City of Cloverdale Audited Financial Statements.

G.2 Resolution Revising the Current Stage 3 Water Shortage Emergency, Mandating Water Conservation Measures to a Stage 1 Water Shortage Emergency Requiring Voluntary Water Conservation and Terminating the Previously Enacted Water Shortage Surcharge enacted Pursuant to Cloverdale Municipal Code section 13.05.070
Agenda Report
Attachment 1 - Resolution
Attachment 2 - Budget Amendment
Agenda Report
Attachment 1 - Resolution
Attachment 2 - Exhibit A - Deed and Conservation Easement (DRAFT) Agenda Report
Attachment 1 - Resolution
Attachment 2 - Exhibit A - Budget Adjustment
Attachment 3 - Original Agenda Report
Attachment 4 - Resolution No. 003-2023
Agenda Report
Attachment 1 - FY 21 22 Audited Financial Statements
Attachment 2 - Statement of Auditing Standards
Attachment 3 - Presentation
4 Recommended Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Amending the current Stage 3 Water Shortage Emergency to a Stage 1 Water Shortage Emergency Requiring Voluntary Water Conservation pursuant to Chapter 13.05 “Conservation of Water Supply” of the Cloverdale Municipal Code and terminating the previously enacted Water Shortage Surcharge pursuant to Cloverdale Municipal Code section 13.05.070.” H. SUBCOMMITTEE REPORTS
Subcommittee Agendas, Approved Minutes, and Media are available at www.cloverdale.net/agendacenter Finance, Administration & Police:

Last Meeting Agenda | Next Meeting - May 1, 2023
Planning & Sustainability:

Last Meeting Agenda | Next Meeting - April 18, 2023
Public Works & Facilities:

Last Meeting Agenda | Next Meeting - April 25, 2023
Joint City/Cloverdale Unified School District:

Last Meeting Agenda | Next Meeting - April 17, 2023
Homelessness Community Advisory Group:

Last Meeting Agenda | Next Meeting - June 12, 2023
I. COUNCILMEMBER REPORTS
I.1 Written Reports
J. INFORMATIONAL REPORTS
K. LEGISLATIVE REPORTS, LETTERS OF SUPPORT/OPPOSITION
K.1 Letter of Support - Federal Transit Grant
L. CITY MANAGER/CITY ATTORNEY REPORT(S)
M. STATUS UPDATES

CURRENT IMPACTS TO WATER SUPPLY
COVID-19 EMERGENCY
N. COUNCIL DIRECTION ON FUTURE AGENDA ITEMS
(City Council and Council Subcommittee)
O. ADJOURNMENT
To the next regular meeting of the City Council scheduled for April 26, 2023 Agenda Report
Attachment 1 - Resolution
Councilmember Bagby
City of Cloverdale - letter of support for Federal Transit Grant 5 CERTIFICATE OF POSTING
I, Mike Maloney, City Clerk, do hereby declare under penalty of perjury that the foregoing agenda was posted on 1) the outdoor bulletin board at City Hall, 124 N. Cloverdale Blvd., Cloverdale, CA 95425, and 2) Cloverdale Performing Arts Center, 209 N. Cloverdale Blvd., Cloverdale, CA 95425; online at cloverdale.net/agendacenter and made available for public review at least 72 hours prior to the meeting as required by the Brown Act.

Date posted: 4.6.2023 | Time posted: 4:30 p.m. | City Clerk Signature: s/Mike Maloney

IMPORTANT NOTICES REGARDING CITY COUNCIL MEETINGS
SPECIAL NEEDS ACCOMMODATIONS: In compliance with the Americans with DisabiliFes Act and Title VI, if you need special assistance to parFcipate in this meeFng, please contact the City Clerk's office at [email protected] or 707.894-1712. NoFficaFon at least 72 hours prior to the meeFng will enable the City to make reasonable accommodations are made to provide accessibility to the meeting.

AB343 REQUIREMENTS: Any wriFngs or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspecFon in the City Hall offices located at 124 N. Cloverdale Blvd., Cloverdale, CA 95425 during normal business hours.

WAIVER WARNING: If you challenge decisions/direcFons of the City Council in court, you may be limited to raising only those issues you or someone else raised at public hearings described in this agenda, or in wriGen correspondence delivered to the City of Cloverdale, or prior to, the public hearing.

TRANSCRIPTIONS: The City does not transcribe its proceedings, however, Zoom translaFon may be available upon request. Anyone who desires a verbal or wriGen record of this meeFng should arrange for an aGendant by a court reporter or for other acceptable means of recording. Such arrangement will be at the sole expense of the individual requesFng the recordaFon. QuesFon about this agenda should be directed to City Hall at 707-894-2521. Video recordings are available at www.cloverdale.net/agendacenter.

The City of Cloverdale thanks you in advance for taking all precautions to prevent spreading COVID-19. 6 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE RECOGNIZING APRIL 1 - 7, 2023 AS WEEK OF THE YOUNG CHILD IN CLOVERDALE Whereas, the Child Care Planning Council of Sonoma County and other local organizations, in conjunction with the National Association for the Education of Young Children, are celebrating the Week of the Young Child, April 1 - 7, 2023; and
Whereas, these organizations are working to improve early care and education opportunities that provide a foundation of learning for all children in Cloverdale, California; and Whereas, high-quality early care and education can help ameliorate the effects of poverty, detect and remediate delays, identify and help prevent child neglect, and lead to positive outcomes for individual children, helping them be better prepared for school and more likely to succeed in life; and Whereas, young children need developmentally appropriate, accessible, and available early care and education settings; and
Whereas, young children need access to an early childhood education workforce that reflects a rich diversity of linguistic, racial, and cultural identities; and Whereas, child care providers, especially women of color, who are skilled and valuable front-line professionals that risked their health to provide early care and education during a global pandemic deserve to be fairly compensated; and
Whereas, early childhood education providers and other community members who make a difference in the lives of young children in Cloverdale deserve thanks and recognition; and THEREFORE BE IT RESOLVED, the City of Cloverdale does hereby proclaim April 1-7, 2023 as the “Week of the Young Child” in the City of Cloverdale and commits to investments that stabilize, sustain, and support child care and early learning so this essential workforce can continue to support children, families, and our economy through the pandemic crisis, recovery, and beyond.

Dated: April 12, 2023
SO ORDERED:
_________________________
Todd Lands, Mayor
7 City Council Proclamation
Declaring April 9-15, 2023 as
“National Public Safety Telecommunicators Week”
WHEREAS, emergencies can occur at any time that requires police, fire, or emergency medical services; and
WHEREAS, when an emergency occurs, the prompt response of police officers, firefighters, and paramedics is critical to the protection of life and preservation of property; and WHEREAS, the safety of our police officers and firefighters is dependent upon the quality and accuracy of information obtained from citizens who telephone the City of Cloverdale emergency communications center; and
WHEREAS, Public Safety Telecommunicators are the first and most critical contact our citizens have with emergency services; and
WHEREAS, Public Safety Telecommunicators are the single vital link for our police officers and firefighters by monitoring their activities by radio, providing them information and ensuring their safety; and WHEREAS, Public Safety Telecommunicators of the City of Cloverdale have contributed substantially to the apprehension of criminals, suppression of fires, and treatment of patients; and, WHEREAS, dispatchers have exhibited compassion, understanding, and professionalism during their job performance in the past year.

NOW, THEREFORE BE IT RESOLVED the City of Cloverdale declare the week of April 9-15, 2023, to be “National Public Safety Telecommunicators Week” in the City of Cloverdale and further extend our appreciation to our Dispatchers Tami Lemley, Michael Newhall, Carolyn Peterson, Lori Smith, Darlene Strattan, Dispatch Supervisor Caitlin Jensen, and Records Manager Linda Webb, whose diligence and professionalism keep our city and citizens safe.

Dated: April 12, 2023
SO ORDERED:
_____________________________
Todd Lands, Mayor
8 A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE RECOGNIZING APRIL 2023 AS SEXUAL ASSAULT AWARENESS MONTH IN CLOVERDALE Whereas, Sexual Assault Awareness Month is intended to draw attention to the fact that sexual violence is widespread and has a profound and lasting impact on every community member of Sonoma County; and Whereas, Verity, Sonoma County’s Rape Crisis, Trauma, and Healing Center, worked with over 1,200 survivors in Sonoma County in 2022; and
Whereas, national research indicates that one in five women will be raped at some point in their lifetime, and nearly half of all women will experience some form of sexual violence; and Whereas, one in seventeen men will be raped at some point in their lifetime, and one in five men will experience some form of sexual violence; and
Whereas, young people are at greatest risk of sexual violence, and youth aged 12 to 17 are two and a half times more likely to be raped, sexually assaulted, or sexually abused than their adult counterparts; and Whereas, disabled people, people of color, queer people, homeless people, transgender people, undocumented people, youth in foster care, and people of other marginalized identities are even more likely to be victimized by sexual violence; and
Whereas, over 18,000 members of the military and over 80,000 people who are incarcerated experience sexual violence every year; and
Whereas, with leadership, dedication, and encouragement, there is evidence that we can be successful in preventing sexual violence in the City of Cloverdale through increased education, awareness, and community involvement; and
Whereas, the City of Cloverdale strongly supports the efforts of Verity, and encourages every resident to actively engage in public and private efforts to end sexual violence, including conversations about what sexual violence is, how to prevent it, how to help survivors of all backgrounds connect with crucial counseling and other support services, and how every segment of our society can work together to better address sexual violence.

THEREFORE BE IT RESOLVED, The City of Cloverdale reaffirms its commitment to address the issues of rape and sexual violence by: remembering victims, believing and supporting survivors, holding perpetrators accountable for their actions, and challenging societal myths and behaviors that perpetuate sexual violence in our community; and
BE IT FURTHER RESOLVED THAT, along with the United States Government and State of California, the City of Cloverdale designates the month of April 2023 to be SEXUAL ASSAULT AWARENESS MONTH.

Dated: April 12, 2023
SO ORDERED:
_____________________________
Todd Lands, Mayor
9 Page | 1
124 N. Cloverdale Boulevard
Cloverdale, CA 95425
Phone: 707-894-2521
www.cloverdale.net

MINUTES - DRAFT

REGULAR MEETING OF THE CITY COUNCIL AND JOINT MEETING OF THE CLOVERDALE COMMUNITY

DEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS
WEDNESDAY, MARCH 22, 2023
CLOSED SESSION: 5PM | OPEN SESSION: 6PM

CLOVERDALE PERFORMING ART CENTER
209 N. CLOVERDALE BOULEVARD, CLOVERDALE, CA 95425

CLOSED SESSION
A. OPENING CLOSED SESSION:

Call to Order - Mayor Lands called the meeting to order at 5 p.m.

Roll Call - Present: Mayor Lands, Vice Mayor Wolter, Councilmembers: Morgenstern, Wheeler

Absent: Councilmember Bagby
Closed Session Agenda Review (Changes and/or Deletions) - None.

PUBLIC COMMENTS ON CLOSED SESSION AGENDA:

Prior to recessing into Closed Session, the public may speak on items to be addressed in Closed Session. Per City Council Policy, three minutes are allotted to each speaker.

RECESS TO CLOSED SESSION TO HEAR THE FOLLOWING ITEM(S):

Mayor Lands recessed the meeting at 5:02 p.m.

A.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS: Pursuant to Government Code Section 54956.8
Property: Lyda Ranch, Open Space, APNs 115-220-007, 115-220-006 and 115-220-019 Agency negotiator: City Attorney Sanchez and City Manager Kelley Negotiating parties: Olivia Fiori, Acquisition Specialist for Sonoma County Agricultural Preservation
Under negotiation: Disposition of Real Property
ACTION: The item was received and filed.

Mayor Lands adjourned closed session at 5:32 p.m.

OPEN SESSION
B. OPENING PUBLIC SESSION
Call to Order - Mayor Lands called the meeting to order at 6 p.m.

Pledge of Allegiance - Mayor Lands led the pledge of allegiance. 10 Page | 2
Roll Call - Present: Mayor Lands, Vice Mayor Wolter, Councilmembers: Morgenstern, Wheeler

Absent: Councilmember Bagby
Report Out on Closed Session - None.

Conflict of Interest Declaration - None.

Agenda Review (Changes and/or Deletions) - None.

C. PUBLIC COMMENTS:

None.

D. COMMUNICATIONS
D.1 Congressman Mike Thompson Regarding Water Supply
City Manager Kelly introduced the correspondence received.

E. PROCLAMATIONS/PRESENTATIONS
E.1 Proclamation - César Chávez Day
Councilmember Wheeler presented the proclamation.

E.2 Proclamation - Women's History Month
Mayor Lands presented the proclamation and Councilmembers provided comment.

E.3 Presentation - Student Liaison Report
Mayor Lands presented on behalf of Student Liaison Garcia.

E.4 Presentation - Complete Streets Safety
City Manager Kelley introduced the item and Fehr and Peers representative McAdam presented and responded to Councilmember inquiries and comments.

Public Comment:

Emily Shartin spoke in support of the item.

F. CONSENT CALENDAR:

ACTION: A motion was made by Councilmember Wheeler, seconded by Morgenstern, to waive reading of the text and adopt the Consent Calendar.

The motion carried by the following vote:

Yes (4) - Mayor Lands, Vice Mayor Wolter, Councilmembers: Morgenstern, Wheeler No (0) - None
Abstain (0) - None
Absent (1) - Councilmember Bagby
F.1 Minutes Approval - February 22, 2023
ACTION: Approved as submitted.

F.2 Minutes Approval - March 8, 2023
ACTION: Approved as submitted.
11 Page | 3
F.3 2022 General Plan and Housing Element Annual Progress Report ACTION: Accepted the 2022 General Plan Annual Report including the Housing Element Annual Progress Report and authorized Staff to submit the reports to the Governor’s Office of Planning and Research and the State Department of Housing and Community Development.

F.4 Budget Amendment for the Board of State and Community Corrections Officer Wellness and Mental Health Grant Award
ACTION: Resolution was adopted.

RESOLUTION NO. 026-2023 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE AUTHORIZING AN FY 2022-23 BUDGET AMENDMENT TO THE GENERAL FUND IN THE AMOUNT NOT TO EXCEED $15,000.00 FIFTEEN THOUSAND DOLLARS FOR IMPROVING OFFICER WELLNESS AND EXPANDING MENTAL HEALTH SERVICES.

F.5 Consideration for Establishing a Police Officer Trainee Position ACTION: Resolution was adopted.

RESOLUTION NO. 027-2023 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CLOVERDALE APPROVING THE ESTABLISHMENT OF A POLICE OFFICER TRAINEE PROGRAM AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAID AGREEMENT.

F.6 Minor Construction Agreement with DC Electric for the purchase and installation of one (1) new 332l traffic light cabinet including a new 2070e controller with 2033 programming, battery back-up system (bbs) and alpha fxm100 inverter and generator transfer switch assembly in an amount not to exceed $39,575 and amending the FY 2022- 23 budget to reflect the purchase
ACTION: Resolution was adopted.

RESOLUTION NO. 028-2023 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CLOVERDALE APPROVING A MINOR CONSTRUCTION AGREEMENT WITH DC ELECTRIC FOR THE PURCHASE AND INSTALLATION OF ONE (1) NEW 332L TRAFFIC LIGHT CABINET INCLUDING A NEW 2070E CONTROLLER WITH 2033 PROGRAMMING, BATTERY BACK-UP SYSTEM (BBS) AND ALPHA FXM100 INVERTER AND GENERATOR TRANSFER SWITCH ASSEMBLY IN AN AMOUNT NOT TO EXCEED $39,575 AND AMENDING THE FY 2022-23 BUDGET TO REFLECT THE PURCHASE AND INSTALLATION PRICE.

G. PUBLIC HEARINGS
None.

H. NEW BUSINESS
None.
12 Page | 4
I. SUBCOMMITTEE REPORTS
Subcommittee Agendas, Approved Minutes, and Media are available at www.cloverdale.net/agendacenter
Finance, Administration & Police: Chair Lands reported.

Last Meeting Agenda | Next Meeting - April 3, 2023
Planning & Sustainability: Mayor Lands reported on behalf of Chair Bagby.

Last Meeting Agenda| Next Meeting - April 18, 2023
Public Works & Facilities: Chair Wolter reported.

Last Meeting Agenda | Next Meeting - March 28, 2023
Joint City/Cloverdale Unified School District: Chair Lands reported.

Last Meeting Agenda | Next Meeting - April 17, 2023
Homelessness Community Advisory Group: Chair Wheeler reported.

Last Meeting Agenda | Next Meeting - June 12, 2023
J. COUNCILMEMBER REPORTS
Councilmember Wheeler reported.

K. INFORMATIONAL REPORTS
None.

L. LEGISLATIVE REPORTS, LETTERS OF SUPPORT/OPPOSITION
L.1 Letter of Support - Coppertower Family Medical Center Idc., dba: Alexander Valley Healthcare
City Manager Kelley introduced the letter of support.

M. CITY MANAGER/CITY ATTORNEY REPORT(S)
None.

N. STATUS UPDATES
CURRENT IMPACTS TO WATER SUPPLY - City Manager Kelley reported.

O. COUNCIL DIRECTION ON FUTURE AGENDA ITEMS
Congressman Mike Thompson Correspondence Regarding Water Supply to Finance, Admin, and Police Subcommittee. Complete Streets Assessment to Public Works and Facilities Subcommittee.

P. ADJOURNMENT
Mayor Lands adjourned the meeting at 6:41 p.m. to the next regular meeting of the City Council scheduled for April 12, 2023.

Approved On: April 12, 2023
_______________________
Mike Maloney, City Clerk
13 City Council/Successor Agency
Agenda Item Summary
Agenda Item: E.2
Meeting Date: March 12, 2023
Agenda Section:

Consent
Staff Contact:

Derrick Montanye, Public Works Director
Darren Hernandez, Senior Water Treatment Plant Operator Agenda Item Title:

Minor Construction Agreement with PumpMan Norcal for Well 6 pump repairservices for the City of Cloverdale Water Treatment Plant.

Recommended Council Action(s):

Adopt a Resolution Entitled, “ A Resolution of the City Council of the City of Cloverdale Approving a Maintenance Agreement for Well 6 pump Repair & Installation with PumpMan Norcal in the amount of $28,480.93, a 15% project contingency and a total project budget not to exceed $32,753.06 and authorizing the City Manager to execute the Maintenance agreement."
Background:

The consistent production of high quality water has made Well 6 a go to well for many years during high demand periods. Well 6 was last service in 2006, and upon reinstating Well 6 after the 2006 service the production was roughly 800 GPM. Since the last service the well production has declined to 170 GPM. With a production of hundreds of millions of gallons each year Well 6 is a pivotal well for the City of Cloverdale’s water production, with the decline in GPM production it is apparent that the high usage of Well 6 has resulted in the well and well pump needing service.

Summary:

PumpMan Norcal has previously provided repair services at the City’s Water Treatment Plant (WTP) and distribution pumping system and has an in-depth knowledge of the equipment at the City’s WTP. PumpMan Norcal provided a scope of work (outlined below) for the replacement of the existing electrical service panel.

Scope of work:

Pumpman provided the following proposals:

1. Pull Well 6 pump, rehab well and reinstall pump in the amount of $28,480.93. (Attachment 1)

2. Including a 15% contingency of $4,272.13
The total cost of the possible cost for Well 6 pump repair services is in the amount of $32,753.06.

Options:

1. Deny Resolution; or

2. Provide alternative direction to Staff.

Subcommittee Recommendation:

Due to time considerations, this project was not presented to the Public Works & Facilities Subcommittee for a recommendation.

Budget/Financial Impact:

The project is proposed to be funded by the City’s FY 2023-2024 budget. This work is budgeted under 600-800- 49130 for the Well 6 repair and installation. Fund 600 has sufficient budget to cover the expense of the proposed work.
14 Agenda Item: E.2
Meeting Date: March 12, 2023
Page: 2
Attachments:

1. Resolution

2. PumpMan Norcal Proposal – Well 6 Pump Repair and installation 15 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE APPROVING A MAINTENANCE AGREEMENT FOR WELL 6 PUMP REPAIR & INSTALLATION WITH PUMPMAN NORCAL IN THE AMOUNT OF $28,480.93, A 15% PROJECT CONTINGENCY AND A TOTAL PROJECT BUDGET OF $32,753.06 AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE MAINTENANCE AGREEMENT WHEREAS, the City of Cloverdale maintains and operates a Water Treatment Plant (WTP) on West First Street and maintains many Well pumps and systems; and
WHEREAS, PumpMan Norcal is uniquely qualified to perform the Well maintenance and repair work at the City’s WTP and water distribution pump system; and
WHEREAS, the City requested cost proposals from PumpMan Norcal for the Well 6 pump maintenance and repair work at the City’s WTP; and
WHEREAS, PumpMan Norcal provided a cost proposal for well 6 pump maintenance and repair work at the City’s WTP attached hereto as Exhibit A in the amount of $28,480.93; and WHEREAS, the City of Cloverdale has identified sufficient funding in the Water Budget (Fund 600) in the City’s adopted Fiscal Year 2023-24 budget sufficient to complete the repair and maintenance projects.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cloverdale hereby:

1. Approve a Maintenance agreement with PumpMan Norcal in the amount of $28,480.93;

2. Establish a 15% Project Contingency with a Total Project Budget of $32,753.06; and

3. Authorize the City Manager to sign a minor construction management agreement and any necessary changes orders with PumpMan Norcal in a form approved by the City Attorney.

It is hereby certified, that the foregoing Resolution was duly introduced and duly adopted by the City Council of the City of Cloverdale at its regular meeting held on April 12, 2023, by the following vote:

AYES:

NOES:

ABSTAIN:)
ABSENT:

APPROVED: ATTEST:
_______________________ ______________________
Todd Lands, Mayor Mike Maloney, City Clerk
Exhibit A – PumpMan Norcal Proposal – Well 6 Pump Repair and Installation 16 Quote
REMIT TO:

Bartley Pump PM LLC
4000 S. Moorland Ave.

Santa Rosa, CA 95407
T 707-584-9191
F 707-584-9198
www.pumpmannorcal.com
DIR# 1000054366
Customer:

RE:

JOBSITE:

NOTE: Pull and set one pump. No materials are included in this quote.

QUANT ITEM DESCRIPTION TAXABLE TOTAL
1 EA Head Nut 1 $ 79.50
1 EA Head Shaft SS 1" $ 379.50
1 EA SS Shaft 1" Special Length $ 435.00
5 EA Line Shaft 1" x 10' 416SS T & C $ 1,747.50
6 EA Water Lube Spider 6" x 2" $ 1,170.00
6 EA Water Lube Bearing 1" x 2" $ 117.00
1 EA Column Pipe 6" x .280" x 5' W/L $ 282.00
5 EA Column Pipe 6" x .280" X 10' W/L $ 2,227.50
1 EA 3 Stg Goulds 9THC W/L
800 GPM @ 94' TDH
6" Discharge, 6" Suction
$ 8,032.50
1 EA Suction Pipe 6" x 5' $ 199.50
1 EA Cone Strainer Weld On 6" w/SS Screen $ 214.50
0 0 0 $ -
Total for materials $ 14,884.50
Sales Tax $ 1,265.18
Freight $ -

LABOR DESCRIPTION
Labor to pull pump $ 2,560.00
Labor to rehab well $ 5,120.00
Labor to video $ 500.00
Labor to clean and repair head $ 450.00
Labor to rebuild packing assy $ 516.25
Labor to pick up and delivery $ 625.00
Labor to reinstall pump $ 2,560.00
0 $ -
TOTAL $ 28,480.93
Sincerely,
Nicole Decker
Assistant Project Manager
License No. 1033562: Class A General Engineering & C-57 Drilling Contractor C-10 Electrical Contractor & C-55 Water Treatment & C-16 Fire Protection & C61/D21 Pumps and Machines Tuesday, March 14, 2023
124 N. Cloverdale Blvd.

Cloverdale, CA
City of Cloverdale
Well 6 Pump Repair & Installation
Well 6
17 City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

E.3
April 12, 2023
Agenda Section:

Consent
Staff Contact:

Kevin Thompson, Assistant City Manager/ Comm. Dev.

Agenda Item Title:

Resolution amending the budget to increase the budgeted amount for Coastland Engineering Inc. for the building permit services.
________________________________________________________________________________________ Recommended Council Action(s):

Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Approving a Budget Amendment Adding an Additional $200,000 needed to continue Coastland Civil Engineering building permit services”.
______________________________________________________________________________________ Background/Summary:

The City’s budget includes an estimated amount to cover Building Department Services. Services include plan checking, and inspections. The estimated amount is derived from the previous year’s amounts. In this current year the City has seen an increase in building permit activity due to the Baumgardner and Dry Creek Rancheria projects. It’s important to note the cost of these services are reimbursed through payment of fees for building department services. The attached resolution amends the budget increasing account 100-50-602-42145 by $200,000 to cover past expenses and future estimated expenses through the end of the fiscal year. _______________________________________________________________________________________ Alternative Options:

1. Reject the proposed resolution that approves a budget amendment to cover building permit services

2. Request modifications to the amendment and continue the matter to a future Regular Council Meeting.
________________________________________________________________________________________ Subcommittee Recommendation:

Not reviewed.
________________________________________________________________________________________ Budget/Financial Impact:

The cost of the building department services will be covered through the collection permit fees and will require an additional $200,000 is required to cover past expenses and future estimated expenses through the end of the fiscal year and will be reimbursed through payment of building permits 100-00-000-34144. ________________________________________________________________________________________ Attachments:

1. Resolution

2. Exhibit A - Budget Amendment Form
18 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO. XX-2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE APPROVING A BUDGET AMENDMENT ADDING AN ADDITIONAL $200,000 NEEDED TO

PROVIDE BUILDING DEPARTMENT SERVICES
WHEREAS, the FY 22/23 Budget (100-50-602-42145) includes $75,000 to fund Building Department Services; and
WHEREAS, since the adoption of the budget the budgeted amount has been spent down due to an increase in building permit activity; and
WHEREAS, given the amount of building permit issuance, the need for additional building permit services is required; and
WHEREAS, an estimated $200,000 is required to cover accrued expenses and estimated expenses through the end of the fiscal year; and
WHEREAS, the cost for building permit services are reimbursed through payment of building permit fees; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cloverdale hereby approves a budget amendment the General Fund 100-50-602-42145 adding an additional $200,000 for building department inspection and plan check services to be reimbursed through payment of building permits 100-00-000-34144.

The foregoing Resolution was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the 12th day of April 2023 by the following roll call vote:

AYES: (0)
NOES: (0)
ABSTAIN: (0)
ABSENT: (0)
Approved: Attested:
____________________ _____________________
Todd Lands, Mayor Mike Maloney, City Clerk
Attachment:

Exhibit A - Budget Amendment Form
19 Budget Amendment Form

REVENUES AND OTHER FINANCING SOURCES
Fund Dept Amendment
Amount
100 000 200,000
REVENUE TOTAL 200,000

EXPENDITURES AND OTHER FINANCING USES
Fund Dept Amendment
Amount
100 200,000
EXPENDITURE TOTAL 200,000

PURPOSE
Services Associated with Building Permits
Date Date
Date Entered by Date
Prepared By
Shannon Peterson
Department Head Finance Director
Date Prepared
April 5, 2023
Account Description Account No.

Community Development
Plan Check Services
Account No.
34144-000
Plan Check Services
Requesting Department
Account Description
City Manager
42145-000
Increase budgeted amount for Building Department Services.

X:\Agenda Development\COUNCIL\2023 REPORTS\4-12-2023\Consent\E.3 Budget Amendment Coastland\Attachment 2 - Budget Amendment 20 City Council/Successor Agency
Agenda Item Summary Agenda Item: E.4
Meeting Date: April 12, 2023
Agenda Section:

Consent
Staff Contact:

David Kelley, City Manager
Agenda Item Title:

Acceptance of Fee Simple Title To The Lyda Ranch Real Property (APNs: 115-220-006 & -007) From, And Granting A Conservation Easement To, The Sonoma County Agricultural Preservation And Open Space District ________________________________________________________________________________________ Recommended Council Action(s):

Adopt A Resolution Entitled, “A Resolution Of The Cloverdale City Council Accepting Fee Simple Title To The Lyda Ranch Real Property (APNs: 115-220-006 & -007) From, And Granting A Conservation Easement To, The Sonoma County Agricultural Preservation And Open Space District; Authorizing Execution Of A Deed And Agreement; Adopting Findings And Authorizing The City Manager To Take Further Necessary Actions In Connection Therewith”
________________________________________________________________________________________ Background:

The Sonoma County Agricultural Preservation and Open Space District (Ag + Open Space) was created and funded with a quarter-cent sales tax in 1990 by a vote of the Sonoma County electorate for a period of twenty years. The mission of Ag + Open Space is to permanently preserve the diverse landscapes of Sonoma County for future generations, including working farms and ranches, greenbelts and community separators between and around urban areas, natural areas and wildlife habitat, and land for public access and passive recreation.

Ag + Open Space District’s Stewardship Policy describes the organization’s responsibilities associated with acquiring and stewarding both conservation easements and land. In November 2006, voters overwhelmingly approved Measure F, which reauthorized Ag + Open Space and extended the quarter-cent sales tax through 2031. Measure F began on April 1, 2011. Since its inception, Ag + Open Space has protected over 123,000 acres with a total interest in land and easements of $438.9 million.

In collaboration with the City, Ag + Open Space staff identified the opportunity to purchase the 209 +/- acre Lyda Ranch property located adjacent to the City of Cloverdale from the owners of the property. After further evaluation by Ag + Open Space, the conservation of, and placement of a conservation easement, on the Lyda Ranch property was determined to be consistent with Ag + Open Space’s guiding document, The Vital Lands Initiative and the Sonoma County General Plan (specifically the Plan's Open Space and Resource Conservation Elements) because it (1) preserves important biotic resource areas and scenic features with (2) protects and enhances Sonoma County’s natural habitats and diverse plant and animal communities; and (3) helps to establish a countywide park and trail system that meets future recreational needs of the county’s residents.

Under the District’s Stewardship Policy, Ag + Open Space manages its fee properties until such time that it transfers or sells the land to a private landowner or recreational entity. ________________________________________________________________________________________ Summary:

Ag + Open Space is currently completing negotiations for acquisition of the Lyda Ranch Real Property (APNs: 115-220-006 & -007). Upon completion of acquisition of the property, Ag + Open Space desires to immediately transfer ownership of the property via fee title to the City of Cloverdale in accordance with 21 City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. E.4

Page 2 of 3 ends

their Stewardship Policy. Ag + Open Space will contribute funds into escrow in an amount not to exceed the appraised value of the fee interest to purchase the land from the current owner, though the property will not be held by Ag + Open Space. Rather, the land will transfer directly from the seller to the City of Cloverdale subject to a conservation easement and recreation conservation covenant to be held by Ag + Open Space. Concurrent with the transfer of the property to the City, the District will retain and record a permanent conservation easement and recreation conservation covenant on the property. The purpose of the Conservation Easement is to preserve and protect forever the Conservation Values of the Property as described below:

Conservation Values. The Lyda Ranch Property is located at the western edge of Cloverdale in the Porterfield Creek watershed and contains approximately 0.33 miles of the North Branch of Porterfield Creek, as well as other smaller, intermittent tributaries to Porterfield Creek. The Property consists of mountainous land, with oak woodlands and other hardwood forests, chaparral, grasslands, Douglas fir forest, redwood groves, and riparian vegetation along the Property’s creeks.

Critical resources on the Property, include natural resources, scenic resources, and recreational and educational resources, including the following:

Natural Resources. There is a diverse suite of natural resources and habitats present on the Property, including oak and hardwood forest, coniferous forest, redwood forest, chaparral, grassland, and creeks with riparian vegetation. In addition to their inherent value, the natural resources on the Property provide important ecosystem services such as floodwater attenuation, water filtration, groundwater recharge, air quality improvement, wildlife habitat, and carbon sequestration.

Scenic Resources. Most of the Property (approximately 176 acres, or 84%) is visible from public roads, including Highway 101 and Cloverdale Boulevard, and protection of areas of the Property that are visible from these public roadways represents an important Conservation Value.

Recreational and Educational Resources. The Property has features suitable for public recreation and education, including hiking, bird watching, outdoor education, and nature study. In 2007, Ag + Open Space helped fund acquisition of the nearby Porterfield Creek Trails and Open Space Preserve. Conservation of this Property will offer additional significant public recreational and educational opportunities in the Cloverdale area.

Ag + Open Space staff has negotiated a conservation easement that requires the Property to be held under a single common ownership, preserves the property’s scenic qualities, and protects the property’s natural resources. The acquisition project will also provide recreational and educational opportunities consistent with protection and preservation of the property’s natural resources. The provisions of the recreation covenant require the property to remain open to the public for recreational and educational purposes in perpetuity. The project structure includes three designated building envelopes as follows: (1) a 0.06-acre Building Envelope near West Second Street, where 5-8 parking spaces may be developed or used by the City for a sediment detention basin; (2) a 1-acre Building Envelope for a picnic area, fitness course, and staging area for the Park and Open Space Preserve; and (3) a 0.8-acre Building Envelope for a ranger 22 City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. E.4

Page 3 of 3 ends

residence and visitor center. The City of Cloverdale may also establish a 1-acre Camping Envelope for a walk-in campsite (with four sites) and a picnic area.

The proposed acquisition of the Lyda Ranch property is planned to be considered by the Ag + Open Space Board of Directors on May 16th. Prior to consideration by the Board of Directors, City staff recommends that the Council Adopt a resolution accepting fee simple title To The Lyda Ranch Real Property (APNs: 115- 220-006 & -007) from, and Granting A Conservation Easement and Recreation Conservation Covenant To, The Sonoma County Agricultural Preservation And Open Space District; Authorizing Execution Of A Deed And Agreement; Adopting Findings And Authorizing The City Manager To Take Further Necessary Actions In Connection Therewith
________________________________________________________________________________________ Options:

1. Reject the Resolution authorizing acceptance of a Deed and dedication of a Conservation Easement for the Lyda Ranch property; or

2. Provide alternative direction to City staff.
________________________________________________________________________________________ Subcommittee Recommendation:

The proposed Deed and Conservation Easement was discussed directly with the City Council in closed session under Real Property Negotiations prior to formal consideration by the City Council. ________________________________________________________________________________________ Budget/Financial Impact:

Acceptance of a deed and agreement by and between City of Cloverdale and the Sonoma County Agricultural Preservation and Open Space District that includes conveyance of a Conservation Easement and assignment of development rights will not have an immediate budgetary or financial impact. The City is expected to have long term costs associated with the future improvement and maintenance of the property. Future improvement and maintenance costs will be determined as part of a future Master Plan developed for the property.
________________________________________________________________________________________ Attachments:

1. Resolution

2. Deed and Conservation Easement
23 1

CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO. 0XX-2023

A RESOLUTION OF THE CLOVERDALE CITY COUNCIL ACCEPTING FEE SIMPLE TITLE TO THE LYDA RANCH REAL PROPERTY (APN: 115-220-006 & -007) FROM, AND GRANTING A CONSERVATION EASEMENT

AND RECREATION CONSERVATION COVENANT TO, THE SONOMA COUNTY AGRICULTURAL PRESERVATION AND OPEN SPACE DISTRICT; AUTHORIZING EXECUTION OF A DEED AND AGREEMENT;

ADOPTING FINDINGS AND AUTHORIZING THE CITY MANAGER TO TAKE FURTHER NECESSARY ACTIONS

IN CONNECTION THEREWITH
WHEREAS, the Sonoma County Agricultural Preservation and Open Space District (the “District”) is in the process of purchasing fee simple interest in that certain real property consisting of approximately 209 acres located on Foothill Drive, known as the Lyda Ranch property (the “Property”); and WHEREAS, the District desires to immediately transfer the ownership of the Property to the City of Cloverdale (the “City”), in exchange for the City’s agreement to maintain the natural resources and open space values of the Property and the City’s conveyance of a conservation easement to the District; and WHEREAS, District and City staff have negotiated the terms and conditions under which the District would transfer the Property to the City, and the City would convey a conservation easement in the Property to the City, pursuant to a Deed and Agreement (collectively, the “Agreements”); and WHEREAS, the Sonoma County Board of Supervisors acting in their capacity as the Board of Directors of the District is scheduled to take various actions at their May 16th Board meeting including: (i) authorize District staff to purchase the Property; (ii) authorize the District’s transfer of fee simple title to Property to the City; (iii) authorize acceptance of a conservation easement in the Property from the City; (iv) authorize the District’s execution of the Agreements; (v) made findings with respect to consistency with the Sonoma County 2020 General Plan and exemption from the requirements of the California Environmental Quality Act (“CEQA”); and (v) authorize the preparation of escrow instructions to implement the Agreements; and
WHEREAS, the Property provides an opportunity for the City of Cloverdale to maintain a beautiful open space parcel for the purposes of well-planned community parkland, recreational and educational uses that will benefit the City’s current and future residents and visitors and Sonoma County as a whole.

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Cloverdale hereby:

1. Finds that the foregoing recitals are true and correct.

2. Finds that acquisition of the Property and conveyance of a conservation easement to the District are exempt from the requirements of CEQA (Public Resources Code Section 21000 et seq.) because acquisition of the Property by the City is not a project as that word is defined in Section 15378 of Title 14 of the California Code of Regulations (the “CEQA Guidelines”); alternatively pursuant to Section 15317 of the CEQA Guidelines because the purpose of the acquisition and the conservation easement is to maintain the open space character of the area; and alternatively pursuant to Section 15325 (a) (c) and (f) of the CEQA Guidelines because the 24 2
purpose of the acquisition and the conservation easement is to preserve the existing natural conditions, to restore the natural conditions and to preserve lands for park purposes.

3. Finds that acquisition of the Property by the City for the uses provided for in the Agreement attached to as Exhibit A and conveyance of a conservation easement to the District are consistent with, and will further the goals of, the City of Cloverdale 2009 General Plan.

4. Approves the City’s acquisition of the Property from the District pursuant to the terms and conditions set forth in the Agreements.

5. Approves the City’s conveyance of a conservation easement and recreation conservation covenant in the Property to the District pursuant to the terms and conditions set forth in the Agreements.

6. Accept an Endowment Fund in an amount to be determined pursuant to the terms and conditions set forth in a future funding agreement.

7. Authorizes the City Manager to execute the Agreements in final forms approved by the City Attorney and a certificate of acceptance of the District’s deed for conveyance of the Property.

8. Authorizes the City Manager to cause the preparation of escrow instructions and to execute and/or record such other instruments and to take such other actions as necessary to carry out the intent of this Resolution.

9. Authorizes the City Clerk or designee, immediately upon the adoption of this Resolution, to file a Notice of Exemption with the County Clerk of Sonoma County in conformance with the procedures provided for the filing of such notices in CEQA and the CEQA Guidelines.

It is hereby certified that the foregoing Resolution was duly introduced and duly adopted by the Cloverdale City Council at a regular meeting held on the 12th day of April 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTESTED:
______________________________ __________________________________ Todd Lands, Mayor Mike Maloney, City Clerk
Exhibit A – Deed and Conservation Easement
25 Soda Springs Ranch Draft Conservation Easement 03_02_23 1 RECORDING REQUESTED BY AND RETURN TO:

Clerk of the Board of Directors
Sonoma County Agricultural
Preservation and Open Space District
575 Administration Drive, Room 102A
Santa Rosa, CA 95403
______________________________________________________________________________ Free recording per Government Code Section 6103

DEED AND AGREEMENT

BY AND BETWEEN

CITY OF CLOVERDALE AND

THE SONOMA COUNTY AGRICULTURAL PRESERVATION

AND OPEN SPACE DISTRICT

CONVEYING A CONSERVATION EASEMENT
AND

ASSIGNING DEVELOPMENT RIGHTS
CITY OF CLOVERDALE, a California municipal corporation, (“GRANTOR”) and the Sonoma County Agricultural Preservation and Open Space District, a public agency formed pursuant to the provisions of Public Resources Code sections 5500 et seq. (“DISTRICT”), agree as follows:

RECITALS
A. GRANTOR is the owner in fee simple of that certain real property located in Sonoma County and more particularly described in Exhibit A, attached hereto and incorporated herein by this reference ("the Property").

B. In 1990, the voters of Sonoma County approved the creation of DISTRICT and the imposition of a transactions and use tax. The purpose for the creation of DISTRICT and the imposition of the tax was to provide for the preservation of agriculture and open space through the acquisition of interests in appropriate properties from willing sellers consistent with a voter-approved Expenditure Plan. DISTRICT was created and the tax imposed in order to further the state policy for the preservation of agricultural and open space lands, to meet the mandatory requirements imposed on the County and each of its cities by Government Code sections 65560 et seq. and to advance the implementation of the open space elements of their respective general plans. In 2006, the voters of Sonoma County approved an extension of the transaction and use tax, a transfer of taxing authority to the County of Sonoma, and an update of the Expenditure Plan.

C. The DISTRICT is organized pursuant to Public Resources Code sections 5500 et seq. and is duly authorized to acquire and hold conservation easement interests pursuant to Civil Code section 815.3 and Public Resources Code section 5540.
26 2 Soda Springs Ranch Draft Conservation Easement 03_02_23 D. On [Date], DISTRICT's Board of Directors, pursuant to Government Code section 65402 and Sonoma County Ordinance No. 5180, determined, by its Resolution No. [Number], that the acquisition of a conservation easement in the Property was consistent with the Sonoma County General Plan (specifically the Plan's Open Space and Resource Conservation Elements) because [Give specific reasons for GP conformity – same as language in resolution] it (1) preserves important biotic resource areas and scenic features with (2) protects and enhances the county’s natural habitats and diverse plant and animal communities; and (3) helps to establish a countywide park and trail system that meets future recreational needs of the county’s residents. By that same resolution, the DISTRICT’s Board of Directors determined that its funding of the Project is consistent with the voter-approved Expenditure Plan.

E. [If additional plans to reference:] This Easement, as further defined below, will further the goals, objectives, and policies of the following adopted local plans: [name plans], and the DISTRICT’s Vital Lands Initiative.

F. DISTRICT has the authority to acquire conservation easements by virtue of Public Resources Code section 5540 and possesses the ability and intent to enforce the terms of this Easement.

H. In an agreement of even date titled Recreation Conservation Covenant and recorded contemporaneously, GRANTOR has obligated itself and its successors to engage in certain recreational operations on the Property. It is the intent of GRANTOR and DISTRICT that the Recreation Conservation Covenant and this Agreement will be construed together in order to achieve the purposes of both agreements.

THEREFORE, in consideration of the foregoing recitations and of the mutual covenants, terms, conditions, and restrictions herein set forth and other valuable consideration receipt of which is hereby acknowledged, GRANTOR and DISTRICT agree as follows:

EASEMENT
PART ONE: GRANT OF EASEMENT

1. Grant and Acceptance of Conservation Easement and Assignment of Development Rights. Pursuant to the common and statutory law of the State of California including the provisions of Civil Code sections 815 through 816, inclusive, GRANTOR hereby grants to DISTRICT and DISTRICT accepts a conservation easement over the Property in perpetuity under the terms and conditions set forth herein (“the Easement”). GRANTOR hereby irrevocably assigns to DISTRICT all development rights associated with the Property, except as specifically provided by this Easement.

2. Conservation Values. The Property is located at the western edge of Cloverdale in the Porterfield Creek watershed and at the Effective Date of the Easement contains approximately 27 Soda Springs Ranch Draft Conservation Easement 03_02_23 3

0.33 miles of the North Branch of Porterfield Creek, as well as other smaller, intermittent tributaries to Porterfield Creek. The Property consists of mountainous land, with oak woodlands and other hardwood forests, chaparral, grasslands, Douglas fir forest, redwood groves, and riparian vegetation along the Property’s creeks. Critical resources on the Property (collectively “the Conservation Values”), include natural resources, scenic resources, and recreational and educational resources, including the following:

2.1 Natural Resources. There is a diverse suite of natural resources and habitats present on the Property, including oak and hardwood forest, coniferous forest, redwood forest, chaparral, grassland, and creeks with riparian vegetation. In addition to their inherent value, the natural resources on the Property provide important ecosystem services such as floodwater attenuation, water filtration, groundwater recharge, air quality improvement, wildlife habitat, and carbon sequestration.

2.2 Scenic Resources. Most of the Property (approximately 176 acres, or 84%) is visible from public roads, including Highway 101 and Cloverdale Boulevard, and protection of areas of the Property that are visible from these public roadways represents an important Conservation Value.

2.3 Recreational and Educational Resources. The Property has features suitable for public recreation and education, including hiking, bird watching, outdoor education, and nature study. In 2007, Ag + Open Space helped fund acquisition of the nearby Porterfield Creek Trails and Open Space Preserve. Conservation of this Property will offer additional significant public recreational and educational opportunities in the Cloverdale area.

3. Conservation Purpose. It is the purpose of this Easement to preserve and protect forever the Conservation Values of the Property, as described in Section 2. This purpose shall hereinafter be referred to as “the Conservation Purpose of this Easement.” GRANTOR and DISTRICT intend that this Easement will constrain development and confine the use of the Property to uses and activities that are consistent with the Conservation Purpose of this Easement and will prohibit and prevent any uses and activities of the Property that will materially impair or interfere with the Conservation Values of the Property. GRANTOR and DISTRICT intend that all Conservation Values of the Property will be fully preserved and protected in perpetuity. In the event, however, that the preservation and protection of one Conservation Value becomes irreconcilably inconsistent with the preservation and protection of another Conservation Value, the following priorities shall be followed: i) first priority shall be given to preservation and protection of natural resources; ii) next preservation and protection of scenic resources; iii) and third, preservation and protection of recreational and educational uses.

PART TWO: RIGHTS OF DISTRICT

4. Affirmative Rights of DISTRICT. DISTRICT shall have the following affirmative rights under this Easement:
28 4 Soda Springs Ranch Draft Conservation Easement 03_02_23

4.1 Protecting Conservation Values. DISTRICT shall have the right to preserve, protect and document in perpetuity the Conservation Values of the Property.

4.2 Property Inspections. DISTRICT shall have the right to enter upon the Property and to inspect, observe, and study the Property for the purposes of (i) identifying the current activities and uses thereon and the condition thereof, (ii) monitoring the activities and uses thereon to determine whether they are consistent with the terms, conditions and Conservation Purpose of this Easement, (iii) enforcing the terms, conditions and Conservation Purpose of this Easement, and (iv) exercising its other rights under this Easement. Such entry shall be permitted at least once a year at reasonable times, upon one week’s prior notice to GRANTOR, and shall be made in a manner that will not unreasonably interfere with GRANTOR’s use and quiet enjoyment of the Property pursuant to the terms and conditions of this Easement. Each entry shall be for only so long a duration as is reasonably necessary to achieve the purposes of this Section 4.2, but shall not necessarily be limited to a single physical entry during a single twenty-four hour period. Notwithstanding the foregoing, should DISTRICT’s General Manager have a reasonable belief that GRANTOR is in breach of this Easement, DISTRICT shall have the right at any time, upon twenty-four hours’ prior notice to GRANTOR, to enter upon the Property for the purpose of determining whether such breach has occurred. The rights of entry provided by this Section 4.2 shall extend to the officers, agents, consultants, and volunteers of DISTRICT.

4.3 Enforcement. DISTRICT shall have the right to enforce the rights herein granted and to prevent or stop, by any legal means, any activity or use on the Property that is inconsistent with the terms, conditions or Conservation Purpose of this Easement and to require restoration of such areas or features as may be damaged by such activities or uses.

4.4 Audit. DISTRICT shall have the right to inspect, copy and audit GRANTOR’s financial and programmatic records, of any type, nature or description, as DISTRICT deems necessary to ensure GRANTOR’s compliance with Section 5.1.7.

4.5 Approval of Certain Uses. DISTRICT shall have the right to review and approve proposed uses and activities on the Property as more specifically set forth in Section 5 and Section 6.

4.6 DISTRICT Signage. DISTRICT shall have the right to erect and maintain a sign or other appropriate marker in a location on the Property acceptable to GRANTOR, visible from a public road, bearing information indicating that the Property is protected by DISTRICT and acknowledging the sources of DISTRICT funding for the acquisition of this Easement. The wording and design of the sign or marker shall be determined by DISTRICT with consent of GRANTOR. No such sign or marker shall exceed thirty-two (32) square feet in size nor be artificially illuminated. DISTRICT shall be responsible for the cost of erecting and maintaining such sign or marker.

PART THREE: RESTRICTIONS ON DEVELOPMENT, USE AND ACTIVITIES 29 Soda Springs Ranch Draft Conservation Easement 03_02_23 5

5. GRANTOR’s Restricted Rights. GRANTOR shall confine the use of the Property to activities and uses that are consistent with the Conservation Purpose of this Easement. Any activity or use that is inconsistent with the Conservation Purpose of this Easement is prohibited.

GRANTOR and DISTRICT acknowledge that the following list does not constitute an exhaustive recital of consistent and inconsistent activities and uses, but rather (i) establishes specific duties with respect to the preservation of the Property’s Conservation Values; (ii) establishes allowed activities and uses; (iii) establishes restricted or prohibited activities and uses; and (iv) provides guidance for determining the consistency of similar activities and uses whether or not contemplated or existing at the Effective Date, in accordance with the procedures set forth in Section 6.

5.1 General Requirements for All Uses.

5.1.1 Compliance with Governmental Regulations. All activities and uses on the Property shall be undertaken in a manner consistent with all applicable federal, state, and local statutes, ordinances, rules, and regulations.

5.1.2 Compliance with Terms, Conditions and Conservation Purpose of this Easement. All activities and uses on the Property shall be undertaken in a manner consistent with the terms, conditions and Conservation Purpose of this Easement.

5.1.3 Protection of Conservation Values. All activities and uses on the Property shall be undertaken in a manner that protects and preserves the Conservation Values.

5.1.4 Protection of Soil and Water. No activity or use on the Property shall be undertaken in a manner that results in significant soil degradation or pollution, or significant degradation or pollution of any surface or subsurface waters.

5.1.5 Low-impact Development. All structures and improvements shall follow low-impact development practices to the extent feasible, which is generally defined as development that minimizes impacts to natural hydrology and aims for ecological sustainability.

5.1.6 Notice and Approval Procedures. Whenever this Section 5 requires prior notice to or approval by DISTRICT, such notice shall be given or approval shall be obtained in accordance with Section 6 of this Easement.

5.1.7 Revenue Generation. Any revenue generated from GRANTOR’s activities and uses shall be used toward the cost of operating, maintaining, restoring, and enhancing the Property or other DISTRICT-protected Properties, and towards educational or recreational programs that take place on the Property or other DISTRICTprotected Properties. 30 6 Soda Springs Ranch Draft Conservation Easement 03_02_23

5.1.8 Master Plan. GRANTOR intends to develop and implement a Master Plan for the Property. The Master Plan and future updates and amendments will be subject to review and approval by DISTRICT in accordance with Section 6.1 of the Easement.

The Master Plan shall not be implemented on the Property until it has been approved by DISTRICT. The Master Plan will include best management practices or other guidance to assure that activities are conducted in a manner that do not impact the Conservation Values of the Property. The Master Plan shall incorporate information from a road and sediment source assessment, with recommendations for roads that will be decommissioned, converted to trails, and/or repaired.

The Master Plan may be amended, revised, or updated from time to time provided that such amendment, revision, or update shall be subject to DISTRICT’s approval in accordance with Section 6.1 of this Easement. DISTRICT’s review and approval of amendments, revisions, and updates to the Master Plan shall be based on the amendment, revision or update’s consistency with the terms, conditions, and Conservation Purpose of this Easement. DISTRICT’s approval of the Master Plan, or any amendment thereto, shall also be considered approval of any improvement to the Property or program identified in the Master Plan pursuant to Section 6.1.3.

5.1.9 Duty to Prevent Waste, Nuisance, and Trespass. Without limiting the generality of the foregoing, GRANTOR shall maintain the Property in a condition consistent with the Conservation Purpose of this Easement, which obligation shall include the undertaking of reasonable and necessary steps to prevent harm to the Conservation Values of the Property due to foreseeable acts or omissions of third parties.

5.1.10 Sound Amplification and Lighting. No exterior sound amplification or night lighting is permitted, with the limited exception of night lighting associated with residential use as described in Section 5.3.3, which lighting must be designed to minimize impacts to wildlife.

5.1.11 Project Structure Map and Easement-Designation Areas. The Project Structure Map, attached hereto as Exhibit B and incorporated herein by this reference (the “Project Structure Map”), depicts several types of geographically specific areas of the Property within which particular uses may be permitted, or within which particular restrictions on use may apply (“Easement-Designation Areas”). These EasementDesignation Areas are likewise depicted on the Baseline Documentation Report Site Map (the “Baseline Site Map”), as identified in Section 9. The specific locations and descriptions of the Easement-Designation Areas are described more particularly below and in Exhibit C (Legal Description of Easement-Designation Areas). In the event that a conflict is found between the written descriptions of the Easement-Designation Areas in this Easement, the Project Structure Map, and the Baseline Site Map, the written legal description shall prevail. The Easement Designation Areas are designated and described as follows:
31 Soda Springs Ranch Draft Conservation Easement 03_02_23 7 a) Building Envelopes. The Property contains three “Building Envelopes” where certain specified development is permitted , designated as follows: (1) a 0.06-acre Building Envelope near West Second Street, where 5-8 parking spaces may be developed or used by the City for a sediment detention basin. This is immediately west of and adjacent to North Foothill Drive (“Building Envelope 1”); (2) a 1-acre Building Envelope for a picnic area, fitness course, and staging area for the Park and Open Space Preserve (“Building Envelope 2”); and (3) a 0.8-acre Building Envelope for a Ranger residence and visitor center (“Building Envelope 3”).
b) Camping Envelope. Subject to DISTRICT approval, GRANTOR may establish a 1-acre Camping Envelope for a walk-in campsite (with four sites) and picnic area (“Camping Envelope”). If the location of the Camping Envelope is to change in the future, this relocation shall be subject to DISTRICT approval, with the former abandoned campsite to be restored to its original natural state.

5.2 Subdivision and Parcels. GRANTOR acknowledges and agrees that the Property is and shall always remain one legal parcel under one common ownership. GRANTOR shall not divide the Property, whether by subdivision, conveyance, lot line adjustment, or any other means, nor shall GRANTOR gain or seek to gain recognition, by certificate of compliance under the Subdivision Map Act or otherwise, of additional parcels which may have previously been created on the Property by prior patent or deed conveyances, subdivisions, or surveys, nor shall GRANTOR place or convey any portion of the Property into ownership separate from the whole of the Property, except as expressly provided in Section 5.2.1 below.

5.2.1 Exceptions. This prohibition against division of the Property shall be inapplicable to:
a) Conveyance to Government or Non-Profit Entity. Subject to prior written approval by DISTRICT, GRANTOR may voluntarily convey a portion of the Property to a government or non-profit entity exclusively for conservation or park and open space purposes.
b) Leases. GRANTOR may lease a portion(s) of the Property in accordance with Section 5.3.3(b).

5.2.2 Historic Parcels. GRANTOR acknowledges that one or more additional historic parcels may exist on the Property, previously created by patent or deed conveyances, subdivisions, lot line adjustments, surveys, recorded or unrecorded maps or other documents. GRANTOR waives all rights to recognition of such historic parcels, whether through certificate of compliance under the Subdivision Map Act or otherwise. 32 8 Soda Springs Ranch Draft Conservation Easement 03_02_23

5.3 Land Uses. GRANTOR may use the Property only as described in this Section 5.3.

All other uses are prohibited unless the DISTRICT determines, in its sole discretion, that such uses or activities are sufficiently similar to expressly permitted uses or activities and are consistent with the Conservation Purpose of this Easement. No exterior sound amplification or night lighting is permitted, except that night lighting is permitted where associated with residential uses as defined in Section 5.4.3.

5.3.1 Natural Resource Protection, Preservation, Restoration, and Enhancement. GRANTOR may protect, preserve, restore, and enhance the natural resources of the Property in accordance with sound, generally-accepted conservation practices and the provisions of Section 5.5.

5.3.1.1 Mitigation. Subject to prior written approval of DISTRICT, the Property may be used for mitigation of on- or off-site projects if DISTRICT determines, in its sole discretion, that the following criteria are met: 1) the proposed mitigation enhances the Conservation Values on the Property; 2) the proposed mitigation is consistent with DISTRICT’s enabling legislation; 3) the proposed mitigation is aligned with DISTRICT’s objectives and goals; and 4) the proposed mitigation does not present a risk to DISTRICT’s long-term fiscal stability. Furthermore, 1) any additional protections required by regulatory agencies in association with a mitigation project must be consistent with this Easement; and 2) the sale of mitigation credits is prohibited.

5.3.2 Recreational and Educational Use. DISTRICT recognizes that GRANTOR intends to make the Property available to the public for low-intensity public outdoor recreation and education. All public outdoor recreational and educational uses and activities on the Property shall be designed and undertaken in a manner compatible with natural resource protection and scenic preservation. Such uses must occur in approved locations and may include, but are not limited to, hiking; bicycling; horseback riding; picnicking; nature study; and other such uses similar in nature and intensity.

GRANTOR may also provide appropriate opportunities for members of the public with disabilities who require motorized equipment to access the Property and its features, provided that such use is conducted in a manner consistent with the Conservation Purpose of this Easement.
a) Camping. Within the Camping Envelope, as defined in Section

5.1.11(b), GRANTOR may make the Property available for low-impact, non-group camping, with five campers or fewer permitted per campsite. The location of these campsites shall be consistent with the Conservation Values of the Property, and the location shall be subject to written DISTRICT approval. In no event shall there be greater than four walk-in sites.
33 Soda Springs Ranch Draft Conservation Easement 03_02_23 9 b) Public Recreational and Educational Special Events. All public recreational and educational special events, regardless of size, shall take place within one of the Building Envelopes, except as such events may make use of designated trails. Trail use may occur only during daylight hours. Public recreational and educational special events open to less than 60 participants may occur as frequently as desired, without DISTRICT approval. The Master Plan shall identify the maximum number of attendees at special events, and the number of special events allowed per year, based on a demonstrated carrying capacity of the Property with consideration of the Conservation Values. All special events shall not result in any permanent alteration of the Property or have any detrimental impact on the natural resources of the Property. The Property shall remain open to the public during public recreational and educational special events. GRANTOR shall document date, event size, type, and location of each such event and make such documentation available to DISTRICT upon request.

5.3.3 Residential Use. Subject to prior written approval of DISTRICT, GRANTOR may allow persons associated with and necessary for the permitted public recreational, educational, and resourcemanagement uses to reside on the Property in Building Envelope 3.

5.3.4 Commercial. GRANTOR conduct commercial uses on the Property only as follows:
a) Recreation and Education. GRANTOR may charge reasonable fees for permitted recreational and educational uses in accordance with Sections 5.1.7. b) Leases and Rentals. GRANTOR may lease or rent the Property, or portions thereof, for permitted residential, recreational, educational, and natural resources protection uses.
c) Ancillary. Subject to prior written approval of DISTRICT, GRANTOR may undertake other minor recreational and educational commercial uses found to be consistent with Conservation Purpose of this Easement.

5.4 Structures and Improvements. GRANTOR may repair, replace, construct, place, and maintain structures and improvements on the Property only as provided below. All structures and other improvements allowed by Sections 5.4.1 through 5.4.4, whether existing at the time of this Easement or placed subsequent to this Easement, shall be located within a Building Envelope (unless otherwise provided below) as designated in Exhibit B (Project Structure Map), attached hereto and incorporated herein by this reference, and as shown on the Baseline Site Map prepared pursuant to Section 9. At no time shall the structures and improvements existing at the date of execution of this Easement or constructed subsequently pursuant to Sections 5.4.1, 5.4.2 and 5.4.3 cover, cumulatively, more than 4% of the Property. 34 10 Soda Springs Ranch Draft Conservation Easement 03_02_23 Furthermore, no structure or improvement shall exceed 15 feet in height except as otherwise provided herein.

For the purposes of this Easement, structures and improvements are defined as all permanently installed buildings, structures, improvements, fixtures, fences, roads, parking lots, trails, group picnic areas, refuse containers, and any developed recreational areas.

5.4.1 Maintenance, Repair, or Replacement of Structures and Improvements.

GRANTOR may maintain, repair, or replace structures and improvements existing at the date hereof or constructed subsequently pursuant to the provisions of this Easement, as follows:
a) If the maintenance, repair, or replacement does not increase the height of the structure or improvement, increase the land surface area it occupies or change its location or function, no notice to or approval by DISTRICT shall be required.
b) Any maintenance, repair, or replacement that increases the height of the structure or improvement, increases the land surface area it occupies, or changes its location or function shall be treated as new construction and shall be subject to the provisions of Sections 5.4.2 through 5.4.6.

5.4.2 Residential Structures and Improvements. With prior written approval from DISTRICT, GRANTOR may construct or place within Building Envelope 3, one residence for employee land manager(s), provided that such residence (including decking and patios) shall not exceed 15 feet in height and/or be greater than 1,000 square feet in size, exclusive of the garage area, which shall be subject to the cap applicable to structures accessory to residential use. With prior written approval from DISTRICT, GRANTOR may construct or place within Building Envelope 3, structures and improvements reasonably related to the permitted residential use of the Property including, but not limited to, a garage and shed. The total cumulative square footage of the structures accessory to residential use shall not exceed 1,000 square feet.

In addition to the permanent residential structure, and with prior written DISTRICT approval, GRANTOR may locate, within Building Envelope 3, one nonpermanent residential unit, such as a Recreational Vehicle (RV) or a 5th-wheel Camper/Trailer, to house land manager(s).

Within Building Envelope 3, GRANTOR may engage in gardening and cultivation activities associated with the permitted educational and ancillary residential use of the Property, including but not limited to a personal residential/kitchen garden and other small-scale cultivation.
35 Soda Springs Ranch Draft Conservation Easement 03_02_23 11

5.4.3 Structures and Improvements for Recreational and Educational Uses.

Subject to prior written DISTRICT approval, GRANTOR may construct or place structures and improvements associated with permitted outdoor recreational and educational uses, only as follows:
a) Within the Building Envelopes: Structures and improvements reasonably serving the permitted outdoor recreational and educational, and natural resource management uses of the Property. A visitor center of 1,000 square feet is permitted only within Building Envelope 3. b) Outside the Building Envelopes: Trails and pathways, bridges, boardwalk, signs, picnic tables, refuse and recycling containers and other similar structures and improvements without any notice to or approval from the District.
c) Except where otherwise provided herein, permeable trails and pathways; restrooms and other similar improvements may be constructed or placed only with prior written approval of DISTRICT.
d) Within the Camping Envelope, four individual, non-group walk-in camp sites, with accompanying restroom facility, consistent with the terms of Section 5.3.2.2.

5.4.4 Structures and Improvements Accessory to Natural Resource Protection Use. Subject to prior written notice to DISTRICT, GRANTOR may place or construct within the Building Envelope 3 shown in Exhibit B (Project Structure Map) and on the Baseline Documentation Report Site Map (Baseline Site Map), as identified in Section 9 (Building Envelope 3), accessory structures and improvements reasonably necessary for natural resource protection on the Property, including sheds and greenhouses. Subject to prior written approval of DISTRICT, GRANTOR may place or construct temporary accessory structures and improvements outside of a Building Envelope as necessary during, and in connection with, natural resource restoration and enhancement activities.

5.4.5 Public Parking and Access Roads. Subject to prior written approval of DISTRICT, within Building Envelope 1, GRANTOR may construct new roads and public parking area(s) and reconstruct or expand existing roads and parking area(s) provided that such roads and parking area(s) (i) are directly required for uses and activities allowed herein; and (ii) are the minimum necessary for such uses and activities. Roads and parking area(s) shall be constructed and maintained so as to minimize erosion and sedimentation and ensure proper drainage, utilizing Best Management Practices for roads as recommended by California Department of Fish and Wildlife or other similar or successor entity. Roads and parking area(s) constructed subsequent to this Easement may not be paved with asphalt, concrete, or other impervious surface unless such paving is required by any federal, state, or local law, code, ordinance, or regulation, 36 12 Soda Springs Ranch Draft Conservation Easement 03_02_23 including, but not limited to the Americans with Disabilities Act. Roads and parking area(s) that are abandoned, permanently closed, and/or decommissioned shall be revegetated with native species, stabilized and ensured of proper drainage.

5.4.6 Fences and Gates. With prior written notice to DISTRICT, GRANTOR may construct and erect new fencing and gates only as necessary for permitted uses of the Property or as necessary in connection with GRANTOR’S duties to prevent foreseeable trespass pursuant to Section 5.1. All fencing and gates must i) preserve the scenic values of the Property; ii) be the minimum necessary in design and extent; iii) not impede wildlife movement except within Building Envelopes and in cases where necessary to protect the allowed natural resources preservation, restoration, and enhancement uses or detention basins described in this Easement; and iv) comply with the DISTRICT’s then current guidelines for fences on conservation lands. In the event of destruction or deterioration of any fences or gate, whether existing at the date hereof or constructed subsequently pursuant to the provisions of this Easement, GRANTOR may maintain and/or replace such fencing pursuant to the provisions of this Section

5.4.6. In the event any fence or gate, or portion thereof, becomes obsolete or unnecessary for the uses described in this Section 5.4.6, GRANTOR shall remove such fencing or gate from the Property.

5.4.7 Utilities and Energy Resources. With prior written approval from DISTRICT, GRANTOR may expand existing or develop or construct new utilities, including electric power, septic or sewer, communication lines, and water production, storage and delivery systems provided that such utilities are directly required for permitted uses on the Property and are reasonably scaled to serve only those uses. Subject to prior written notice to DISTRICT, GRANTOR may use any existing water wells on the Property, subject to obtaining any required approval from any regulatory agency, provided that such water shall be used solely for permitted uses on the Property, unless otherwise approved by the DISTRICT in writing. Electric power and communication utilities may serve off-site use if associated improvements are located on a permitted structure and do not cause such structure to exceed size and height limitations.

5.4.8 Signs. GRANTOR may construct or place signs as set forth in this Section

5.4.6. No sign shall be artificially illuminated.
a) Without prior written notice to or approval of DISTRICT, GRANTOR may construct or place two signs not to exceed 45 square feet in size to identify the Property from public roadways.
b) Without prior written notice to or approval of DISTRICT, GRANTOR may construct or place four (4) signs not to exceed 32 square feet in size as trailhead or interpretive signs and/or to acknowledge participation of funding agencies for permitted uses on the Property.
37 Soda Springs Ranch Draft Conservation Easement 03_02_23 13 c) Without prior written notice to or approval of DISTRICT, GRANTOR may construct or place signs no more than six (6) square feet in size to (i) mark the boundary of the Property; (ii) provide directional, interpretive and educational information; and (iii) set forth park and/or local area rules or regulations applicable to use of the park, provided that the size and number of such signs shall be limited to that which is reasonably necessary to accomplish the permitted uses herein, and further provided that such signs are sited and constructed in a manner that does not create a significant visual impact. d) Subject to prior written approval of DISTRICT, GRANTOR may construct or place additional signs necessary or appropriate for allowed uses, provided that any such additional signs are sited and constructed in a manner that does not create a significant visual impact.

5.4.9 Public Safety Systems. With prior written approval from DISTRICT, GRANTOR may install communication and geophysical data collection, monitoring, and transmission systems and associated infrastructure directly supportive of public safety operations, including, but not limited to, wildfire detection sensors and cameras, weather stations, stream gauges, seismic sensors, and emergency communication systems (“Public Safety Systems”), provided such infrastructure is the minimum necessary for the public safety purpose and is designed, sited, constructed, and maintained so as to minimize impacts to the Conservation Values of the Property. Public Safety Systems do not include telecommunications facilities designed for use by the general public, such as commercial cell phone towers or antennae, which are subject to the provisions of Section 5.4.7. Vegetation management related to the maintenance and operation of such systems shall be subject to the provisions of Section 5.5.4.2 of this Easement.

5.5 Land and Resource Management. All land and resource management activities must be designed and implemented in accordance with sound, generally-accepted conservation practices.

5.5.1 Surface Alteration. Unless necessary for the immediate preservation of public health and safety, alteration of the contour of the Property in any manner whatsoever is prohibited, including excavation, removal or importation of soil, sand, gravel, rock, peat or sod, except as reasonably necessary in connection with the uses, structures and/or improvements allowed under Section 5 of this Easement, or except with the prior approval of the District. In the event that surface alteration is required for the immediate preservation of public health and safety, DISTRICT requires notice within 30 days of the event that required surface alteration to be done. In connection with allowed uses, structures and/or improvements, movement of over 50 cubic yards of material in any calendar year is subject to prior DISTRICT approval. 38 14 Soda Springs Ranch Draft Conservation Easement 03_02_23

5.5.2 Water Resources. Unless necessary for the immediate preservation of public health and safety, draining, filling, dredging, diking, damming or other alteration, development or manipulation of watercourses, subsurface water, springs, ponds, and wetlands is prohibited except as approved in writing by the District. The District will approve such work only if it is (i) reasonably necessary for the maintenance, replacement, development, and expansion of water storage and delivery systems allowed under Section 5.4.7; (ii) reasonably necessary for the construction, reconstruction, and expansion of trails, pathways, or roads and associated crossings; or (iii) reasonably necessary to conduct restoration and enhancement of natural resources as allowed under Section 5.5.5. Trails and recreational developments near streams and within riparian areas will be the minimum necessary in order to protect Conservation Values.

With prior written DISTRICT approval, GRANTOR can, in the 0.06-acre Building Envelope 1, construct flood control structures (“detention basins”) on the Property.

Detention basin design shall enhance and not detract from habitat values to the maximum extent feasible.

5.5.3 Mineral Exploration. Exploration for, or development and extraction of, minerals and hydrocarbons by any surface or sub-surface mining or any other method is prohibited.

5.5.4 Vegetation and Fuel Management. GRANTOR may undertake vegetation and fuel management activities to reduce wildfire risk as provided in this section. All vegetation and fuel management activities shall be designed and implemented to minimize harm to native wildlife and plants. If vegetation and fuel management activities are to take place during nesting season, GRANTOR shall ensure that nesting surveys are conducted in coordination with a qualified biologist and shall modify activities based on survey results to prevent harm to identified nests.

5.5.4.1 Within 100 feet of structures and without need for notice to or approval from DISTRICT, GRANTOR may undertake brush removal, mowing, grazing, tree trimming, targeted tree removal, and other vegetation management methods of similar nature and intensity.

5.5.4.2 Farther than 100 feet from structures, GRANTOR may undertake vegetation management pursuant to a Vegetation Management Plan (defined below) approved in advance by DISTRICT, or in accordance with any order from a state or local fire protection agency having jurisdiction.

A “Vegetation Management Plan” is a document designed to guide GRANTOR’s conduct of vegetation management pursuant to this section and may describe either an individual vegetation management project or a more comprehensive plan covering multiple projects. Any Vegetation Management Plan must incorporate the best available science and must 39 Soda Springs Ranch Draft Conservation Easement 03_02_23 15 identify the following: a) the purpose of proposed work, b) the location of the treatment area(s), c) a timeline for completion, d) the “before” condition of the treatment area(s), e) management objectives, f) treatment methods, g) post-treatment maintenance, and h) best management practices, such as soil protection, infrastructure needs, appropriate tree spacing, special-status species protection, invasive species management, and snag retention. Any Vegetation Management Plan must be consistent with any then-current DISTRICT wildfire management policy, the Management Plan, and the terms of this Easement. Any Vegetation Management Plan may include the following treatment methods:

5.5.4.2.1 Limited brush removal and mowing, or other methods of similar nature and intensity;

5.5.4.2.2 Limited grazing undertaken in accordance with sound, generally accepted conservation practices;

5.5.4.2.3 Limited tree trimming and limited tree removal within a fuel break area or calming zone (as designated in the approved Vegetation Management Plan), and, if recommended by a fire protection agency having jurisdiction, vegetation removal within a fire break (as designated in the approved Vegetation
Management Plan); and

5.5.4.2.4 Prescriptive or cultural burning consistent with the standards and requirements of the local fire protection agency having jurisdiction.

5.5.4.3 Following any such vegetation management, GRANTOR shall promptly provide to DISTRICT a record of the “after” condition of the treatment areas, such as photographs and descriptions of the results of treatment.

5.5.5 Natural Resource Preservation, Restoration, and Enhancement. With prior written approval of DISTRICT, GRANTOR may undertake natural resource preservation, restoration, and enhancement activities, including but not limited to, bank and soil stabilization, practices to reduce erosion and enhance water quality, native plant and wildlife habitat and connectivity, and activities that promote biodiversity. All such activities must be undertaken pursuant to a Master Plan approved in accordance with Section 5.1.8.

5.5.6 Native Tree Removal. Harvesting, cutting, trimming, transplanting, or destruction of any native trees is prohibited, except as reasonably necessary (i) to control insects and disease; (ii) to prevent personal injury and property damage; (iii) for 40 16 Soda Springs Ranch Draft Conservation Easement 03_02_23 the purpose of vegetation and fuel management, in accordance with Section 5.5.4; (iv) for natural resource preservation, protection, restoration, and enhancement, as set forth in Section 5.5.5; (v) with prior written approval of DISTRICT, within the footprint of permitted structures and improvements; or (vi) to promote or facilitate scientific research in service of the Conservation Values. For the purpose of this Easement, native trees shall be those trees native to Sonoma County.

5.5.7 Native Vegetation Removal. Removal or destruction of any native nontree vegetation is prohibited, except as reasonably necessary (i) within footprint of permitted structures and improvements; (ii) to control insects and disease; (iii) to prevent personal injury and property damage; (iv) for the purpose of fuels and vegetation management, in accordance with Section 5.5.4; (v) for natural resource preservation, restoration and enhancement, as set forth in Section 5.5.5, including onsite seed collection for restoration and enhancement purposes, both on- and off-site; (vi) for tribal cultural gathering in accordance with Section 5.5.13; or (vii) to promote or facilitate scientific research in service of Conservation Values. For the purpose of this Easement, native vegetation shall be vegetation native to Sonoma County.

5.5.8 Native Animal Removal. Killing, hunting, trapping, injuring or removing native animals is prohibited except (i) under imminent threat to human life or safety; (ii) as reasonably necessary to promote or sustain biodiversity in accordance with preservation, protection, restoration, and enhancement activities in connection with Section 5.5.5, using selective control techniques consistent with the policies of the Sonoma County Agricultural Commissioner and other governmental entities having jurisdiction; or (iii) to promote or facilitate scientific research in service of Conservation Values.

5.5.9 Non-Native Plants and Animals.
a) Removal. GRANTOR may remove or control non-native plant and animal species provided that techniques used minimize harm to native wildlife and plants and are in accordance with sound, generally-accepted conservation practices.
b) Introduction. GRANTOR shall not establish or plant non-native plant and animal species that are not native to California, except within personal gardens within the Building Envelopes.

5.5.10 Off-road Motorized Vehicle Use. Use of motorized vehicles off roadways is prohibited, except for the minimum necessary in connection with permitted construction, maintenance, emergency access, and property management activities, and except where legally required.
41 Soda Springs Ranch Draft Conservation Easement 03_02_23 17

5.5.11 Dumping. Dumping, releasing, burning, or other disposal of wastes, refuse, debris, non-operative motorized vehicles, or hazardous substances is prohibited.

GRANTOR shall remove garbage or materials dumped on the Property by third parties within a reasonable amount of time.

5.5.12 Outdoor Storage. Outdoor storage shall be prohibited except as provided in this section.
(a) Materials Required For Permitted Uses. GRANTOR may store materials and supplies required for permitted uses outdoors within the three Building Envelopes (excluding the Camping Envelope), provided such storage shall be located so as to minimize visual impacts. GRANTOR may construct sheds and similar structures within the three Building Envelopes to facilitate such storage in accordance with Section 5.4.
(b) Storage of Construction Materials. GRANTOR may store construction and other work materials outdoors needed during construction of permitted structures and improvements on the Property while work is in progress and for a period not to exceed thirty (30) days after completion or abandonment of construction. Construction shall be deemed abandoned if work ceases for a period of 180 days.

5.5.13 Tribal Cultural Plant Gathering. Cultural plant gathering shall be permitted only in conformance with approved Master Plan.

5.6. Public Access Limitations. GRANTOR and DISTRICT understand and agree that the Property will be developed for a public park and open space preserve in perpetuity.

GRANTOR, however, may exclude the public from the Property on a temporary basis to the extent necessary for public health or safety or for preservation of the Conservation Values of the Property. In addition, the City may establish reasonable ongoing hours of operation during which the Public may access the Property. Nothing in this Easement shall be construed to preclude GRANTOR’s right to grant access to third parties to the Property consistent with the terms, conditions and Conservation Purpose of this Easement.

5.7. Easements. GRANTOR may continue the use of existing easements of record granted prior to this Easement. The granting of new temporary or permanent easements, and the modification or amendment of existing easements is prohibited without the prior written approval of the DISTRICT. It is the duty of GRANTOR to prevent the use of the Property by third parties that may result in the creation of prescriptive rights.

PART FOUR: PROCEDURES AND REMEDIES

6. Notice and Approval Procedures. Some activities and uses permitted by this Easement require that prior written notice be given by GRANTOR to DISTRICT, while other activities and uses permitted by this Easement require the prior written approval of DISTRICT. Unless and 42 18 Soda Springs Ranch Draft Conservation Easement 03_02_23 until such notice is given or approval is obtained in accordance with this Section 6, any such activity or use shall be deemed to be prohibited on the Property. GRANTOR shall use the procedures set forth in Section 6.1 and 6.2 below to provide notice to DISTRICT or to obtain DISTRICT’s approval. All notices and requests for approval shall include all information necessary to permit DISTRICT to make an informed judgment as to the consistency of the GRANTOR’s request with the terms, conditions and Conservation Purpose of this Easement.

The DISTRICT may request such additional or supplemental information as it deems necessary to evaluate any notice or request for approval. Forms for notices and requests for approval shall be available at DISTRICT’s offices.

6.1 Approval, Amendments, Revisions and Updates of Master Plan. GRANTOR and DISTRICT acknowledge that GRANTOR intends to prepare a Master Plan for the Property to define and guide future use and development of the Property and to streamline DISTRICT approvals under this Easement. Pursuant to Section 5.1.8 of this Easement, GRANTOR shall secure DISTRICT’s approval of such Master Plan and any amendments, revisions or updates (collectively “Revisions”) prior to their implementation.

The Master Plan and any amendments, revisions or updates (collectively “Revisions”) must identify, at a minimum, (a) all major components of park use (including recreational, educational, and resource management use), (b) the nature of each proposed use and its intended location, (c) all proposed structures, and (d) all actions to be taken to protect natural resources.

DISTRICT’s approval shall be based solely upon its reasonable determination as to whether the Master Plan or Revisions are consistent with the terms, conditions and Conservation Purpose of this Easement, and does not constitute issuance of entitlements. DISTRICT acknowledges that, in light of the public processes required for development of the Property for recreation and educational use and natural resource preservation, time is of the essence and DISTRICT’s approval may not be unreasonably withheld or delayed. GRANTOR shall use the following procedure to obtain DISTRICT’s approval for the Master Plan and Revisions.

6.1.1 GRANTOR may, at its discretion, at any time, submit a Master Plan or Revisions to DISTRICT for its review and approval. DISTRICT shall have sixty (60) days from the receipt of the Master Plan or Revisions, plus twenty-one (21) days from any subsequent or follow up submittal, to review the Master Plan or Revisions and either approve the Master Plan or Revisions or notify GRANTOR of any objection thereto.

DISTRICT’s response, whether approval or objection, shall be in writing and delivered to GRANTOR in accordance with Section 19. If DISTRICT has any objections to the Master Plan or Revisions, it shall state such objections in sufficient detail to enable GRANTOR to modify the Master Plan or Revisions so as to bring it into compliance with the terms, conditions and Conservation Purpose of this Easement.

6.1.2 In connection with any environmental review of the Master Plan or Revisions under the California Environmental Quality Act (“CEQA”) or any successor 43 Soda Springs Ranch Draft Conservation Easement 03_02_23 19 statute then in effect, GRANTOR shall provide DISTRICT with notification of and opportunity to comment on any draft environmental document made public under the statute, prior to adoption or certification of that environmental document.

6.1.3 Once the Master Plan is approved by DISTRICT, all uses and activities shall be conducted in a manner consistent with the Master Plan. Upon DISTRICT’s approval and GRANTOR’s adoption of a Master Plan, all uses and improvements described therein and all development reasonably necessary to implement those described uses and improvements, shall be deemed to be consistent with the terms, conditions and Conservation Purpose of this Easement and shall be permitted on the Property with no further notice to or approval by DISTRICT required, provided all such uses and improvements shall be undertaken in accordance with the terms and conditions of this Easement.

6.1.4 In the event that changed circumstances cause previously permitted uses or activities to become a violation of this Easement, including Section 5.1, DISTRICT may request GRANTOR to revise or update the Master Plan to address changed conditions on the Property.

6.2 Uses and Activities Requiring Notice or Approval to DISTRICT. In the absence of a Master Plan or Revisions approved by DISTRICT, or for uses and activities not described in a Master Plan or Revisions approved by DISTRICT, the following procedures shall be followed for giving notice or obtaining DISTRICT approval where such notice or approval is required by this Easement. Unless and until such notice is given or approval is obtained in accordance with this Section 6.2, any such activity or use shall be deemed to be prohibited on the Property. In any instance in which DISTRICT approval is required, DISTRICT’s approval shall be based solely upon its reasonable determination as to whether the activity or use is consistent with the terms, conditions and Conservation Purpose of this Easement, except where another standard (such as sole discretion) is provided herein. DISTRICT acknowledges that, in light of the public processes required for development of the Property for recreation and educational use and natural resource preservation, time is of the essence and DISTRICT’s approval shall not be unreasonably withheld or delayed.

6.2.1 Uses/Activities Requiring Notice to DISTRICT. For any activity or use that requires prior written notice to DISTRICT, GRANTOR shall deliver such notice to DISTRICT at least forty-five (45) days prior to the commencement of such activity or use. That forty-five (45) day time period provides DISTRICT an opportunity to evaluate whether the proposed activity or use is consistent with the terms, conditions and Conservation Purpose of this Easement before the activity or use is begun.

6.2.2 Uses/Activities Requiring Prior Approval from DISTRICT. For any activity or use that requires prior written approval from DISTRICT, GRANTOR shall file a request for such approval (“GRANTOR’s request”) at least forty-five (45) days prior to the intended commencement of such activity or use. DISTRICT shall have forty-five (45) 44 20 Soda Springs Ranch Draft Conservation Easement 03_02_23 days from the receipt of a complete request to review the request and to approve, conditionally approve, disapprove or notify GRANTOR of any objection thereto. In order to consider GRANTOR’s request complete, DISTRICT may require that GRANTOR submit additional information and/or a plan for such proposed activity or use. Disapproval or objection, if any, shall be based on DISTRICT’s determination that the proposed activity or use is inconsistent with the terms, conditions or Conservation Purpose of this Easement or that GRANTOR’s request is incomplete or contains material inaccuracies.

If, in DISTRICT’s judgment, the proposed activity or use would not be consistent with the terms, conditions or Conservation Purpose of this Easement or the request is incomplete or contains material inaccuracies, DISTRICT’s notice to GRANTOR shall inform GRANTOR of the reasons for DISTRICT’s disapproval or objection. Only upon DISTRICT’s express written approval, given by DISTRICT’s General Manager, may the proposed activity or use be commenced, and then only in accordance with the terms and conditions of DISTRICT’s approval.

6.2.3 DISTRICT’s Failure to Respond. Should DISTRICT fail to respond to GRANTOR’s request for approval within forty-five (45) days of the receipt of GRANTOR’s request, GRANTOR may, after giving DISTRICT ten (10) days written notice by registered or certified mail, commence an action in a court of competent jurisdiction to compel DISTRICT to respond to GRANTOR’s request. In the event that such legal action becomes necessary to compel DISTRICT to respond and GRANTOR prevails in that action, DISTRICT shall reimburse GRANTOR for all reasonable attorney fees incurred in that action. In the alternative, GRANTOR may commence a proceeding in arbitration under Section 13.

6.2.4 Uses/Activities Not Expressly Addressed: DISTRICT’s Approval. In the event GRANTOR desires to commence an activity or use on the Property that is neither expressly permitted nor expressly prohibited in Section 5, GRANTOR shall seek DISTRICT’s prior written approval of such activity or use in accordance with the procedure set forth in Section 6.2. The exercise of any activity or use not expressly permitted in Section 5 may constitute a breach of this Easement and may be subject to the provisions of Section 10.

7. Costs and Liabilities Related to the Property.

7.1 Operations and Maintenance of the Property. GRANTOR agrees to bear all costs and liabilities of any kind related to the operation, upkeep, and maintenance of the Property and does hereby indemnify and hold DISTRICT harmless therefrom. Without limiting the foregoing, GRANTOR agrees to pay any and all real property taxes, fees, exactions, and assessments levied or imposed by local, state, or federal authorities on the Property. GRANTOR further agrees to maintain general liability insurance or adequate self-insurance covering acts on the Property. Except as specifically set forth in Section 8.2 below, DISTRICT shall have no responsibility whatsoever for the operation of the Property, the monitoring of hazardous conditions thereon, or the protection of GRANTOR, the public, or any third parties from risks 45 Soda Springs Ranch Draft Conservation Easement 03_02_23 21 relating to conditions on the Property. Except as otherwise provided in Section 8.1, GRANTOR hereby agrees to indemnify and hold DISTRICT harmless from and against any damage, liability, claim, or expense, including attorneys' fees, relating to such matters.

7.2 Hazardous Materials.

7.2.1 No DISTRICT Obligation or Liability. Notwithstanding any other provision of this Easement to the contrary, the parties do not intend and this Easement shall not be construed such that it creates in DISTRICT:
a) The obligations or liabilities of an “owner” or “operator” as those words are defined and used in environmental laws, as defined below, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 United States Code, sections 9601 et seq.) (“CERCLA”); b) The obligations or liabilities of a person described in 42 United States Code section 9607(a)(3) or any successor statute then in effect; c) The right to investigate and remediate any hazardous materials, as defined below, on or associated with the Property; or
d) Any control over GRANTOR’s ability to investigate and remediate any hazardous materials, as defined below, on or associated with the Property.

7.2.2 Warranty of Compliance. GRANTOR represents, warrants, and covenants to DISTRICT that GRANTOR’s use of the Property shall comply with all environmental laws, as defined below.

7.2.3 Definitions. For the purposes of this Easement:
a) The term "hazardous materials" includes, but is not limited to, any flammable explosives, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA, the Hazardous Materials Transportation Act, as amended (49 United States Code sections 1801 et seq.), the Resource Conservation and Recovery Act of 1976, as amended (42 United States Code sections 6901 et seq.), sections 25117 and 25316 of the California Health & Safety Code, and in the regulations adopted and publications promulgated pursuant to them, or any other federal, state, or local environmental laws, ordinances, rules, or regulations concerning the environment, industrial hygiene or public health or safety now in effect or enacted after the date of this Easement.
b) The term "environmental laws" includes, but is not limited to, any federal, state, local or administrative agency statute, regulation, rule, ordinance, 46 22 Soda Springs Ranch Draft Conservation Easement 03_02_23 order or requirement relating to environmental conditions or hazardous materials.

8. Indemnification.

8.1 GRANTOR's Indemnity. GRANTOR shall hold harmless, indemnify, and defend DISTRICT, its agents, employees, volunteers, successors and assigns, from and against all damages, liabilities, claims and expenses, including reasonable attorneys' fees, arising from or in any way connected with (i) injury to or the death of any person, or physical damage to any property resulting from any act, omission, condition or other matter related to or occurring on or about the Property, except to the extent that such damage, liability, claim or expense is the result of the negligence, gross negligence, or intentional misconduct of DISTRICT; and (ii) the obligations specified in Section 7; and (iii) any approvals given under Section 6. In the event of any claim, demand, or legal complaint against DISTRICT, the right to the indemnification provided by this Section 8.1 shall not apply to any cost, expense, penalty, settlement payment, or judgment, including attorneys' fees, incurred prior to DISTRICT's written notice of such claim, demand, or legal complaint to GRANTOR, unless GRANTOR has acquired knowledge of the matter by other means, nor to any costs, expenses, or settlement payment, including attorneys' fees, incurred subsequent to that notice unless such cost, expense, or settlement payment shall be approved in writing by GRANTOR, which approval shall not be unreasonably withheld.

8.2 DISTRICT's Indemnity. DISTRICT shall hold harmless, indemnify, and defend GRANTOR, its heirs, devisees, successors and assigns, from and against all damages, liabilities, claims and expenses, including reasonable attorneys' fees, arising from or in any way connected with injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property and attributable to DISTRICT, except to the extent that such damage, liability, claim or expense is the result of the negligence, gross negligence, or intentional misconduct of GRANTOR (it being the intent of this provision to limit DISTRICT's indemnity to the proportionate part of GRANTOR's damage, liability, claim or expense for which DISTRICT is responsible). In the event of any claim, demand, or legal complaint against GRANTOR, the right to the indemnification provided by this Section 8.2 shall not apply to any cost, expense, penalty, settlement payment, or judgment, including attorneys' fees, incurred prior to GRANTOR's written notice of such claim, demand, or legal complaint to DISTRICT, nor to any costs, expenses, or settlement payment, including attorneys' fees, incurred subsequent to that notice unless such cost, expense, or settlement payment shall be approved in writing by DISTRICT, which approval shall not be unreasonably withheld. DISTRICT hereby also agrees to hold harmless, indemnify and defend GRANTOR from and against all damages, liabilities, claims and expenses, including attorneys' fees, asserted against GRANTOR by any officer, agent, employee, or volunteer of DISTRICT, for personal injury and/or property damage arising out of any inspection or visit to the Property by any such officer, agent, employee or volunteer on behalf of DISTRICT, except to the extent that such injury is attributable to the negligence, gross negligence or intentional misconduct of GRANTOR.
47 Soda Springs Ranch Draft Conservation Easement 03_02_23 23

9. Baseline Documentation for Enforcement. In order to establish the present condition of the Property, DISTRICT has prepared a Baseline Documentation Report which will be maintained on file with DISTRICT and which is intended to serve as an objective information baseline for monitoring compliance with the terms of this Easement. The Baseline Documentation Report includes a Baseline Site Map, which depicts three Building Envelopes. A copy of the Baseline Documentation Report has been reviewed and approved by GRANTOR.

The parties agree that the Baseline Documentation Report provides an accurate representation of the Property at the time of the recordation of this Easement. DISTRICT recognizes GRANTOR intends to develop and implement a Master Plan. The Baseline Report will be supplemented through periodic monitoring reports as the DISTRICT performs its regular monitoring of the Property.]

10. Remedies for Breach.

10.1 DISTRICT's Remedies. In the event of a violation or threatened violation by GRANTOR of any term, condition or restriction contained in this Easement, DISTRICT may, following notice to GRANTOR, institute a suit to enjoin and/or recover damages for such violation and/or to require the restoration of the Property to the condition that existed prior to such violation. The DISTRICT’s notice to GRANTOR shall contain a general description of the condition claimed by DISTRICT to be a violation and shall contain a reasonable and specific cure period by which the violation is to cease and the Property is to be restored to the condition that existed prior to the violation. The notice shall be provided in accordance with Section 19. If DISTRICT reasonably determines that circumstances require immediate action to prevent or mitigate significant damage to the Conservation Values protected by this Easement, DISTRICT (a) may pursue any and all remedies available under law without waiting for the cure period to expire, (b) shall have the right, upon the giving of 24 hours’ notice, to enter the Property for the purpose of assessing damage or threat to the Conservation Values protected by this Easement and determining the nature of curative or mitigation actions that should be taken, and (c) shall have the right to record a notice of violation in the Office of the Sonoma County Recorder.

DISTRICT’s rights under this Section 10 shall apply equally in the event of either actual or threatened violations of the terms of this Easement. GRANTOR agrees that DISTRICT’s remedies at law for any violation of the terms of this Easement are inadequate and that DISTRICT shall be entitled to injunctive relief, both prohibitive and mandatory and including specific performance, in addition to such other relief, including damages, to which DISTRICT may be entitled, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies.

10.2 DISTRICT's Discretion. Enforcement of the terms of this Easement shall be at the sole discretion of DISTRICT, and any forbearance by DISTRICT to exercise its rights under this Easement in the event of any violation or threatened violation of any term of this Easement shall not be deemed or construed to be a waiver by DISTRICT of such term or of any subsequent violation or threatened violation of the same or any other term of this Easement. Any failure by DISTRICT to act shall not be deemed a waiver or forfeiture of DISTRICT's right to enforce any terms or conditions of this Easement in the future.
48 24 Soda Springs Ranch Draft Conservation Easement 03_02_23

10.3 Liquidated Damages. Inasmuch as the actual damages that would result from the loss or deprivation of the Conservation Values of the Property caused by a violation by GRANTOR of the terms of this Easement are uncertain and would be impractical or extremely difficult to measure, GRANTOR and DISTRICT agree that the damages allowed by Civil Code section 815.7(c) shall be measured as follows:
a) For an improvement prohibited by this Easement, an amount equal to the product of (i) the market value of the improvement, (ii) the length of time that the improvement exists on the Property (in terms of years or portion thereof) after notice of violation has been given, and (iii) the then current annual interest rate for post judgment interest; and
b) For an activity or change in use prohibited by this Easement, whether or not it involves an improvement, an amount equal to any economic gain realized by GRANTOR because of the activity or change in use; and
c) For an activity or change in use prohibited by this Easement, whether or not it involves an improvement and where there is no measurable economic gain realized by GRANTOR, the product of (i) the cost of restoration, as set forth in a written estimate by a qualified person selected by DISTRICT, (ii) the length of time that the prohibited activity or use continues (in terms of years or portion thereof) after notice of the violation has been given, and (iii) the then current annual interest rate for post judgment interest.

10.4 GRANTOR's Compliance. If DISTRICT, in the notice to GRANTOR, demands that GRANTOR remove an improvement, discontinue a use or both and claims the damages allowed by Civil Code section 815.7(c), then GRANTOR may mitigate damages by fully complying with DISTRICT's notice within the cure period provided therein. If GRANTOR so complies, then in the event of litigation arising out of the notice, brought either by GRANTOR or by DISTRICT, if GRANTOR prevails, then GRANTOR shall be entitled to economic damages, if any, resulting from its compliance with DISTRICT’s notice. Neither DISTRICT nor GRANTOR shall be entitled to damages where DISTRICT has not claimed damages in its notice.

10.5 Remedies Nonexclusive. The remedies set forth in this Section 10 are in addition to, and are not intended to displace, any other remedy available to either party as provided by this Easement, Civil Code sections 815 et seq. or any other applicable local, state or federal law.

11. Acts Beyond GRANTOR's Control. Except as otherwise provided in Section 5.1 and this Section 11, nothing contained in this Easement shall be construed to entitle DISTRICT to bring any action against GRANTOR for any injury to or change in the Property resulting from causes beyond GRANTOR's control, including wildfire, flood, storm, earth movement, or a tortious or criminal act of a third party which GRANTOR could not have reasonably prevented, or from any prudent action taken by GRANTOR under emergency conditions to prevent, abate, or mitigate 49 Soda Springs Ranch Draft Conservation Easement 03_02_23 25 significant injury to the Property, or other property or persons, resulting from such causes so long as such action, to the extent that GRANTOR has control, is designed and carried out in such a way as to further the Conservation Purpose of this Easement. Notwithstanding the foregoing, GRANTOR shall be liable to DISTRICT for modifications or damage to the Property that impair or damage the Conservation Values of the Property when those modifications or damage result from the acts or omissions of third parties whose use of or presence on the Property is authorized or requested by GRANTOR. In the event that the Conservation Values of the Property are damaged or impaired as a result of the acts or omissions of third parties, GRANTOR shall diligently pursue all available legal remedies against such parties to ensure restoration of the Property. Nothing contained herein shall limit or preclude GRANTOR’s or DISTRICT’s rights to pursue any third party for damages to the Property’s Conservation Values.

12. Arbitration. If a dispute arises between the parties concerning the consistency of any activity or use, or any proposed activity or use, with the terms, conditions or Conservation Purpose of this Easement, or any other matter arising under or in connection with this Easement or its interpretation, either party, with the written consent of the other, may refer the dispute to arbitration by a request made in writing upon the other. Provided that GRANTOR agrees not to proceed with any activity or use that is the subject of the dispute pending resolution of the dispute, the parties shall select a single arbitrator to hear the matter.

If the parties are unable to agree on the selection of a single arbitrator, then each party shall name one arbitrator and the two arbitrators thus selected shall select a third arbitrator who shall be a retired United States District Court or California Superior Court judge; provided, however, if either party fails to select an arbitrator within fourteen (14) days of delivery of the request for arbitration, or if the two arbitrators fail to select a third arbitrator within fourteen (14) days after the appointment of the second arbitrator, then in each such instance, a proper court, on petition of any party, shall appoint the second or third arbitrator or both, as the case may be, in accordance with California Code of Civil Procedure sections 1280 et seq., or any successor statutes then in effect. The arbitration shall be conducted in accordance with said statute, including the provisions of Section 1283.05 of the Code of Civil Procedure which are incorporated into, made a part of, and made applicable to any arbitration pursuant to this Section. The Conservation Purpose of this Easement, the terms and conditions of this Easement, and the applicable laws of the State of California shall be the bases for determination and resolution, and a judgment of the arbitration award may be entered in any court having jurisdiction thereof. The prevailing party shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for all its costs and expenses related to such arbitration, including the fees and expenses of the arbitrators, but excluding attorneys’ fees, which sum shall be determined by the arbitrators and any court of competent jurisdiction that may be called upon to enforce or review the award.

13. Extinguishment and Condemnation.

13.1. Extinguishment. Subject to the requirements and limitations of California Public Resources Code section 5540, or any successor statute then in effect, if circumstances arise in the future that render the Conservation Purpose of this Easement impossible to accomplish, this Easement can only be terminated or extinguished, whether in whole or in part, by judicial 50 26 Soda Springs Ranch Draft Conservation Easement 03_02_23 proceedings in a court of competent jurisdiction, and the amount of the compensation to which DISTRICT shall be entitled from any sale, exchange or involuntary conversion of all or any portion of the Property after such termination or extinguishment, shall be determined, unless otherwise provided by California law at the time, in accordance with Section 13.2. All proceeds paid to DISTRICT shall be used by DISTRICT for the purpose of the preservation of agriculture and open space within Sonoma County.

13.2 Condemnation. If all or any part of the Property is taken by exercise of the power of eminent domain or acquired by purchase in lieu of condemnation; whether by public, corporate, or other authority, so as to terminate this Easement in whole or in part, either GRANTOR or DISTRICT (or both, on such conditions as they may agree) may commence appropriate actions to recover the full value of the Property (or portion thereof) subject to the condemnation or in-lieu purchase and all direct or incidental damages resulting therefrom. Any expense incurred by GRANTOR or DISTRICT in any such action shall first be reimbursed out of the recovered proceeds; the remainder of such proceeds shall be divided between GRANTOR and DISTRICT in proportion to their interests in the Property, as established by Section 13.3.

IF PERCENTAGES TO BE SET AT TIME OF EASEMENT:

13.3 Property Interest and Fair Market Value. This Easement constitutes a real property interest immediately vested in DISTRICT. For the purpose of this Section 13, the parties stipulate that, in the event of condemnation of the Property or any portion thereof, the fair market value of the Property for purposes of just compensation shall be determined as though this Easement did not exist. GRANTOR and DISTRICT shall share the compensation on the following basis: GRANTOR ___% and DISTRICT __ % (which percentages are derived from the ratio of the price paid for the Easement to the appraised value of the Property before being encumbered by the Easement), or as otherwise agreed upon by them in writing at the time of condemnation. In the apportionment of the proceeds from any eminent domain proceeding, an adjustment shall be made in GRANTOR’s favor for any increase in value attributable to improvements made on the Property after the date of this Easement, provided that such improvements were not made or funded by DISTRICT and further provided that such improvements do not constitute a breach of this Easement.

PART FIVE: MISCELLANEOUS

14. Approvals. Whenever in this Easement the consent or approval of one party is required as to an act of the other party, such consent or approval shall not be unreasonably withheld, conditioned or delayed.

15. Interpretation and Construction. To the extent that this Easement may be uncertain or ambiguous such that it requires interpretation or construction, then it shall be interpreted and construed in such a way that best promotes the Conservation Purpose of this Easement. In the event of a conflict between the Project Structure Map and the Baseline Site Map, the Project Structure Map will control.
51 Soda Springs Ranch Draft Conservation Easement 03_02_23 27

16. Easement to Bind Successors. The Easement herein granted shall be a burden upon and shall continue as a restrictive covenant and equitable servitude running in perpetuity with the Property and shall bind GRANTOR, GRANTOR's heirs, personal representatives, lessees, executors, successors, including purchasers at tax sales, assigns, and all persons claiming under them forever. The parties intend that this Easement shall benefit and burden, as the case may be, their respective successors, assigns, heirs, executors, administrators, agents, officers, employees, and all other persons claiming by or through them pursuant to the common and statutory law of the State of California. Further, the parties agree and intend that this Easement creates an easement encompassed within the meaning of the phrase “easements constituting servitudes upon or burdens to the property,” as that phrase is used in California Revenue & Taxation Code section 3712(d), or any successor statute then in effect, such that a purchaser at a tax sale will take title to the Property subject to this Easement.

17. Subsequent Deeds and Leases. GRANTOR agrees that a clear reference to this Easement will be made in any subsequent deed, or other legal instrument, by means of which any interest in the Property (including, but not limited to, a leasehold interest) is conveyed and that GRANTOR will provide a copy of this Easement to any party acquiring an interest in the Property from GRANTOR. In addition, GRANTOR shall give written notice to DISTRICT of the conveyance of any lease in the Property at least thirty (30) days prior to any such conveyance.

No such lease shall exceed twenty-five (25) years.

18. Warranty of Ownership. GRANTOR warrants that it is the owner in fee simple of the Property, and that on the date it executed this Easement the Property is not subject to any liens or deeds of trust.

19. Notices.

19.1 Method of Delivery. Except as otherwise expressly provided herein, all notices, (including requests, demands, approvals or communications) under this Easement shall be in writing and either served personally or sent by first class mail, postage prepaid, private courier or delivery service or telecopy addressed as follows:

To GRANTOR: City Manager
City of Cloverdale
124 North Cloverdale Boulevard
Cloverdale, CA 95425
To DISTRICT: General Manager
Sonoma County Agricultural Preservation and Open Space District 747 Mendocino Avenue, Suite 100
Santa Rosa, CA 95401
52 28 Soda Springs Ranch Draft Conservation Easement 03_02_23 Or to such other address as such party from time to time may designate by written notice pursuant to this Section 19.

19.2 Effective Date of Notice. Notice shall be deemed given for all purposes as follows:
a) When mailed first class postage prepaid to the last address designated by the recipient pursuant to Section 19.1, notice is effective one business day following the date shown on the postmark of the envelope in which such notice is mailed or, in the event the postmark is not shown or available, then one business day following the date of mailing. A written declaration of mailing executed under penalty of perjury by the GRANTOR or DISTRICT or an officer or employee thereof shall be sufficient to constitute proof of mailing.
b) When sent by email or fax to the last email or fax number of the recipient known to the party giving notice, notice is effective on receipt as long as (i) a duplicate copy of the notice is promptly given by first-class or certified mail or by overnight delivery or (ii) the receiving party delivers a written confirmation of receipt. Subject to the foregoing requirements, any notice given by email or fax shall be considered to have been received on the next business day if it is received after 5 p.m. (recipient’s time) or on a non-business day.
c) In all other instances, notice shall be deemed given at the time of actual delivery.

19.3 Refused or Undeliverable Notices. Any correctly addressed notice that is refused or undeliverable because of an act or omission of the party to be notified shall be considered to be effective as of the first date that the notice was refused or considered undeliverable by the postal authorities, messenger, or overnight delivery service.

20. Amendment. If circumstances arise under which an amendment or modification of this Easement would be appropriate, GRANTOR and DISTRICT shall be free to jointly amend this Easement, provided that any amendment shall be consistent with the Conservation Purpose of this Easement, shall ensure protection of the Conservation Values of the Property, shall not affect the Easement’s perpetual duration and shall be consistent with Public Resources Code section 5540 and any successor statute then in effect. Any such amendment shall be in writing, executed by GRANTOR and DISTRICT, and recorded in the Office of the Sonoma County Recorder.

21. No Forfeiture. GRANTOR represents and warrants that nothing contained in this Easement shall result in a forfeiture or reversion of GRANTOR’s title in any respect. If a forfeiture or reversion does occur, GRANTOR shall return, with interest calculated in accordance with the rate established pursuant to the next sentence, all consideration paid by DISTRICT for the acquisition of this Easement. The interest rate applicable to the amount owed to DISTRICT pursuant to this paragraph shall be the percentage change in the Consumer Price 53 Soda Springs Ranch Draft Conservation Easement 03_02_23 29 Index for All Urban Consumers (base year 1982-1984 = 100) for San Francisco Oakland and San Jose published by the United States Department of Labor, Bureau of Labor Statistics from the date the Easement is recorded to the date of DISTRICT’s demand for reimbursement pursuant to this paragraph.

22. Assignment of Rights and Obligations. GRANTOR’s rights and obligations under this Easement will be assigned to GRANTOR’s successor-in-interest upon transfer of GRANTOR’s interest in the Property to such successor, except that GRANTOR’s liability for acts or omissions occurring prior to the transfer shall survive the transfer.

23. Enforceable Restriction. This Easement and each and every term contained herein is intended for the benefit of the public and constitutes an enforceable restriction pursuant to the provisions of Article XIII, section 8 of the California Constitution, California Public Resources Code section 5540, and California Revenue and Taxation Code section 421 et seq., or any successor constitutional provisions or statutes then in effect.

24. Applicable Law and Forum. This Easement shall be construed and interpreted according to the substantive law of California, excluding the law of conflicts. Any action to enforce the provisions of this Easement or for the breach thereof shall be brought and tried in the County of Sonoma.

25. DISTRICT’s General Manager. Wherever used herein, the term DISTRICT’s General Manager, and any pronoun used in place thereof, shall mean and include the General Manager of DISTRICT and his or her duly authorized representatives.

26. Entire Agreement. This instrument sets forth the entire agreement of the parties with respect to this Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to this Easement, all of which are merged herein. No alteration or variation of this instrument shall be valid or binding unless contained in a written amendment prepared, executed and recorded in accordance with Section 20.

27. Severability. In the event any provision of this Easement is determined by the appropriate court to be void and unenforceable, all remaining terms and conditions shall remain valid and binding. If the application of any provision of this Easement is found to be invalid or unenforceable as to any particular person or circumstance, the application of such provisions to persons or circumstances, other than those as to which it is found to be invalid, shall not be affected thereby.

28. Counterparts. This Easement may be signed in multiple counterparts, each of which constitutes an original, and all of which, collectively, constitute only one agreement.

29. Estoppel Certificates. DISTRICT shall, at any time during the existence of this Easement, upon not less than thirty (30) days' prior written notice from GRANTOR, execute and deliver to 54 30 Soda Springs Ranch Draft Conservation Easement 03_02_23 GRANTOR a statement in writing certifying that this Easement is unmodified and in full force and effect (or, if modified, stating the date of recordation of the respective amendment) and acknowledging that there is not, to DISTRICT's knowledge, any default by GRANTOR hereunder, or, if DISTRICT alleges a default by GRANTOR, specifying such default. DISTRICT’s obligation to deliver the statement of certification is conditioned on GRANTOR’s reimbursing DISTRICT for all costs and expenses reasonably and necessarily incurred in its preparation as determined by DISTRICT’s General Manager.

30. No Liens, Encumbrances, or Conveyances. GRANTOR warrants that after it has executed this Easement, it will not record any lien, encumbrance, or otherwise convey any right, title, or interest in and to the Property until such time as this Easement has been accepted and recorded by DISTRICT.

31. Effective Date. This Easement shall be effective as of the date of its acceptance by DISTRICT pursuant to California Public Resources Code sections 5500 et seq. (the “Effective Date”).
55 Soda Springs Ranch Draft Conservation Easement 03_02_23 31 IN WITNESS WHEREOF, GRANTOR and DISTRICT have executed this Easement this ________ day of ____________, 20__.

GRANTOR:

THE CITY OF CLOVERDALE
By:______________________________
(Name), City of Cloverdale
DISTRICT:

SONOMA COUNTY AGRICULTURAL PRESERVATION AND OPEN SPACE

DISTRICT
By: ______________________________
Chris Coursey, President of the Board of Directors
ATTEST:
_____________________________________
Noelle Francis, Clerk of the Board of Directors
NOTE: ACKNOWLEDGMENTS MUST BE ATTACHED FOR ALL SIGNATORIES.

Exhibit A: Legal Description
Exhibit B: Project Structure Map
Exhibit C: Legal Descriptions of Easement Designation Areas Exhibit D: Subordinate Liens, if applicable
5177056.1
56 City Council/Successor Agency
Agenda Item Summary Agenda Item: E.5
Meeting Date: April 12, 2023
Agenda Section:

Consent
Staff Contact:

Susie Holmes, Finance Director
Agenda Item Title:

Budget Amendment for the Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for the replacement of the Southcrest Reservoir ________________________________________________________________________________________ Recommended Council Action(s):

Adopt Resolution titled, “A Resolution of the City Council of the City of Cloverdale Approving a FY 2022-23 Budget Amendment for the Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for replacement of the Southcrest Reservoir approved on January 11, 2023 in the amount of $77,700.”
________________________________________________________________________________________ Background:

On January 11, 2023, the City Council of the City of Cloverdale adopted Resolution No. 003-2023 approving a Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for replacement of the Southcrest Reservoir.

While the Agenda Item Summary stated that the agreement would be paid from water impact fees the corresponding budget amendment was not included with the enabling resolution. ________________________________________________________________________________________ Summary:

This agenda item is recommending that the City Council approve a budget amendment to amend the FY 2022-23 budget transferring funds from Water Impact fees (Fund No. 620-00-000-49999-000) to the Water Enterprise fund (Fund No. 600-40-801-42150-000) in the amount of $77,700. ________________________________________________________________________________________ Options:

1. Authorize the budget amendment

2. Provide alternative direction to staff
________________________________________________________________________________________ Subcommittee Recommendation:

N/A
________________________________________________________________________________________ Budget/Financial Impact:

The Water Impact Fee Fund will have a balance of approximately $515,000 after the budget amendment. ________________________________________________________________________________________ Attachments:

1. Resolution for Budget Amendment

2. Budget Amendment Form

3. Original Agenda Report dated January 11, 2023

4. Original Resolution dated January 11, 2023
57 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO. ____ –2023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE APPROVING A FY 2022-23 BUDGET AMENDMENT FOR THE PROFESSIONAL SERVICES AGREEMENT WITH WEST YOST & ASSOCIATES, INC. TO

PREPARE A WATER SYSTEM HYDRAULIC EVALUATION FOR REPLACEMENT OF THE SOUTHCREST RESERVOIR APPROVED BY THE CITY COUNCIL ON JANUARY 11, 2023 IN THE AMOUNT OF $77,700 WHEREAS, On January 11, 2023, the City Council of the City of Cloverdale adopted Resolution No. 003-2023 approving a Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for replacement of the Southcrest Reservoir; and WHEREAS, the January 11, 2023 Agenda Item Summary stated that the agreement would be paid for from water impact fees; and
WHEREAS, a fiscal year 2022-23 budget amendment to move the funds from the Water Impact Fund to the Water Enterprise Fund to cover the expense is required.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cloverdale hereby approves a budget amendment to the FY 2022-23 to transfer funds from the Water Impact Fund 620 to the Water Enterprise Fund 600-40-801-42150-000 attached hereto as Exhibit A.

The foregoing Resolution was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the 12th day of April 2023 by the following roll call vote:

Ayes: (_)agby
Noes: (_) None

Absent: (_)
Abstaining: (_) None
APPROVED: ATTEST:
______________________________ ____________________________________ Todd Lands, Mayor Michael Maloney, City Clerk
Exhibit A – Budget Amendment Form
58 Budget Amendment Form

REVENUES AND OTHER FINANCING SOURCES
Fund Dept Amendment
Amount
600 00.999 77,700
REVENUE TOTAL 77,700

EXPENDITURES AND OTHER FINANCING USES
Fund Dept Amendment
Amount
620 00.999 77,700
600 40-801 77,700
EXPENDITURE TOTAL 155,400

PURPOSE
attachment
Date Date
Date Entered by Date
49999.000
42150.000
Requesting Department
Account Description
City Manager
Misc Contract Services
Prepared By
S Holmes
Department Head Finance Manager
Date Prepared
April 6, 2023
Account Description Account No.

Water Enterprise
Transfer In
Account No.
39999.000
Transfer Out
X:\Agenda Development\COUNCIL\2023 REPORTS\4-12-2023\Consent\E.5 Cherry Creek Reservoir Hydraulic Evaluation Budget Amendment\SouthCrest Hydraulic Modeling BA 59 City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

E.5
Jan. 11, 2023
Agenda Section
Consent
Staff Contact
Vanessa Apodaca, Interim City Engineer
Agenda Item Title:

Approving a Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for replacement of the Southcrest Reservoir Recommended Council Action:

Adopt a resolution titled, “A Resolution of the City Council of the City of Cloverdale Approving a Professional Services Agreement with West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for replacement of the Southcrest Reservoir.”
Summary:

The City of Cloverdale needs to replace the existing Southcrest Reservoir (also known as Cherry Creek Road Tank/Reservoir). The existing Southcrest Reservoir water tank, constructed in 1966, is the oldest tank in the distribution system, contains lead in the exterior coating, interior corrosion, and doesn’t meet current seismic or structural standards. The Southcrest Reservoir serves Zone 1 of the City’s distribution system which includes approximately 2,000 connections and accounts for 67 percent of the City’s water demand (per the City’s 2010 Water System Master Plan Update). Zone 1 has three gravity storage reservoir locations with a total of 2.5 million gallons of storage. Replacing the Southcrest Reservoir would likely include taking the tank out of service temporarily.

In April 2021, MOE Engineering Inc., completed a feasibility study for the tank. The feasibility study evaluated four alternatives, with total storage at the site ranging from 400,000 gallons to 500,000 gallons. MOE Engineering’s recommended alternative would demolish and replace the existing tank with a 500,000-gallon tank; however, City staff favors the two-tank alternatives since they afford the possibility of keeping the existing tank in service while a new tank is constructed and would provide operational redundancy for future maintenance. Further, MOE Engineering’s recommendations included updating the City’s 2010 Water System Master Plan, including hydraulic model analysis to determine if the proposed tank alternatives will operate and contribute to the City’s storage needs as desired.

A hydraulic evaluation of the existing Zone 1 water system is needed to determine impacts to the Zone 1 area in the vicinity of the tank should the existing tank need to be taken offline during construction, including meeting reliable normal demands and fire flows during construction of the preferred alternative. In addition to the hydraulic model analysis, the proposed hydraulic evaluation will include a peer review of MOE Engineering’s feasibility study to identify any data gaps or additional studies that might be required prior to tank construction, assess an implementation schedule, and identify opportunities to perform work concurrently.

Key tasks included in the preparation of a hydraulic evaluation are:

1. Evaluate ultimate Zone 1 storage needs based on the latest water system demand projections.

2. Assess whether improvements are needed to meet zone demands, including fire flow, during a construction outage.

3. Provide a peer review of the 2021 Feasibility Study to identify any other evaluation needs prior to commencing construction of the preferred alternative.

The proposal from West Yost Associates includes preparation of a storage capacity analysis, hydraulic model update and evaluation, feasibility study peer review, and preparation of a technical memorandum. The work scope also includes an optional task to provide a public meeting presentation. This proposal with a detailed

60 City Council/Successor Agency Agenda Item Summary
Meeting Date: January 11, 2023
Item No. E.5

Page 2 of 2 ends

scope of services is attached to this staff report. The proposed not-to-exceed fee for these services is $77,700.

The Southcrest Reservoir replacement project is identified in the adopted Cloverdale Capital Improvement Plan as the “Cherry Creek Reservoir Rehabilitation” project number WA-066 for a total cost (including construction) of $1,270,000 through 2024.

The attached resolution authorizes West Yost & Associates, Inc. to prepare a water system hydraulic evaluation for replacement of the Southcrest Reservoir and authorizes the City Manager to enter into an agreement with West Yost for the work.

Alternative Options:

1. Reject recommended resolution.

2. Provide alternative direction to staff.

Budget/Financial Impact:

The proposal for the preparation of a water system hydraulic evaluation for replacement of the Southcrest Reservoir is $77,700 which would come from water impact fees.

Subcommittee Recommendation:

This item was not included in the PW Subcommittee agenda.

Attachments:

1. Resolution

2. Exhibit A - Scope of Work
61 CITY OF CLOVERDALE

CITY COUNCIL
RESOLUTION NO 003-2023

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE

APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH WEST YOST ASSOCIATES TO PREPARE A WATER

SYSTEM HYDRAULIC EVALUATION FOR REPLACEMENT OF THE SOUTHCREST RESERVOIR WHEREAS, Zone 1 of the City’s water distribution system is served by three reservoir locations with a total of

2.5 Million gallons of storage; and
WHEREAS, the Southcrest Reservoir (also referred to as the Cherry Creek Road Tank) which is part of the Zone 1 system was constructed in 1966 and requires replacement; and WHEREAS, an engineering feasibility study was conducted in 2021 by MOE Engineering which identified probable costs and included a geotechnical evaluation of the site determining tank replacement is feasible; and
WHEREAS, hydraulic evaluation of the distribution system is needed to determine impacts to the Zone 1 area in the vicinity of the tank, including meeting reliable normal demands and fire flows during construction of the preferred tank replacement alternative; and
WHEREAS, City Staff requested, and West Yost provided a proposal for professional services setting forth the scope to prepare a hydraulic evaluation for a not to exceed total of $77,700; and WHEREAS, West Yost Associates has the experience and qualifications necessary to prepare the hydraulic evaluation.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Cloverdale does hereby appoint West Yost Associates to prepare a hydraulic evaluation and authorizes the City Manager to enter into an agreement with West Yost for the work.

It is hereby certified that the foregoing Resolution was duly introduced and duly adopted by the City Council of the City of Cloverdale at its regular meeting held on the 11th day of January 2023, by the following vote:

AYES: (5) Mayor Lands, Vice Mayor Wolter, Councilmembers: Bagby, Morgenstern, Wheeler NOES: (0)
ABSTAIN:(0)
ABSENT: (0 )
APPROVED: ATTEST:
_______________________ ______________________
Todd Lands, Mayor Mike Maloney, City Clerk
Attachment –
Exhibit A - West Yost & Associates, Inc. Scope of Work
62 1001 Galaxy Way
Suite 310
Concord, CA 94520
925.949.5800 phone
530.756.5991 fax
westyost.com
December 22, 2022 SENT VIA: EMAIL
David Kelley, City Manager
City of Cloverdale
124 N Cloverdale Blvd
Cloverdale, CA 95425
SUBJECT: Proposal for the Southcrest Reservoir Outage Hydraulic Evaluation Dear Mr. Kelley:

West Yost is pleased to submit this proposed scope of services and cost estimate to provide engineering services to assist the City of Cloverdale (City) in preparing a water system hydraulic evaluation for replacement of the Southcrest Reservoir in Zone 1.

OVERVIEW
Zone 1 is the primary pressure zone in the City’s water distribution system. According to the City’s 2010 Water System Master Plan Update (WSMP) the zone includes approximately 2,000 connections and accounts for 67 percent of the City’s water demand. The zone has three gravity storage reservoirs with a total of 2.5 million gallons of storage. The City is planning to replace the 200,000-gallon Southcrest Reservoir, also referred to as the Cherry Creek Road Water Tank, which does not meet current seismic or structural standards and contains lead in the exterior coating.

All alternatives include replacing the existing tank. Three alternatives would involve constructing two tanks on site. The recommended alternative would demolish and replace the existing tank with a 500,000-gallon tank. The City favors the two tank alternatives, since they afford the possibility of keeping the existing tank in service while a new tank is constructed. The purpose of this hydraulic evaluation is to determine impacts to the Zone 1 area in the vicinity of the tank, including meeting reliable normal demands and fire flows during construction of the preferred alternative. According to the City, a new 16-inch water main has been constructed that should improve flow capacity to the areas near the tank.

The City has requested a hydraulic evaluation to:
• Evaluate ultimate Zone 1 storage needs based on the latest water system demand projections;
• Assess whether improvements are needed to meet zone demands, including fire flow, during the construction outage; and
• Provide a peer review of the 2021 Feasibility Study to identify any other evaluation needs prior to commencing construction of the preferred alternative (i.e., replace the existing tank). 63 Mr. David Kelley
December 22, 2022

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N-M-C-CLOVERDALE – LP – SOUTHCREST RESERVOIR

SCOPE OF SERVICES
West Yost’s proposed Scope of Services includes the following tasks:
• Task 1. Prepare Storage Capacity Analysis
• Task 2. Conduct Hydraulic Evaluation
• Task 3. Perform Feasibility Study Peer Review
• Task 4. Prepare Technical Memorandum
• Task 5. Conduct Project Management and Meetings
Each of these tasks is described below.

Task 1. Prepare Storage Capacity Analysis
West Yost will update the storage capacity analysis for Zone 1 to determine total required storage for the zone. The 2010 WSMP based the storage analysis on 2004 total production of 529 million gallons per year (MG/yr), the highest production year for the City, and a projected buildout total production of 834 MG/yr.

The 2020 UWMP indicates that water use has dropped dramatically since the early 2000’s with a total production of 369 MG in 2020,the highest recent year. The UWMP projects a total water use of 583 MG/yr by 2040, indicating that future storage needs are significantly less than identified in the 2010 WSMP and that additional storage may not be required in Zone 1.

The following work will be performed to confirm future storage needs:
• Request and review historical and projected land use and water use data; • Review storage criteria with City to determine whether 2010 WSMP criteria are appropriate or should be revised;
• Meet with City Planning to review General Plan land use and identify most likely future growth areas in Zone 1;
• Calculate demands for Zone 1 for existing and 2040 (buildout) conditions; • Calculate storage needs for existing and 2040 demands in Zone 1; and • Conduct meeting to review storage capacity results.

Task 1 Assumptions
• The analysis will rely on the 2010 WSMP or 2020 UWMP projections and appropriate 2019 land use allocations to Zone 1 – no new water use projections will be developed. • Budgeting assumes meeting to review General Plan land use will be conducted as part of the kickoff meeting. Both the kickoff meeting and storage capacity results are assumed to be virtual meetings.

Task 1 Deliverables
• West Yost will provide updated storage calculations as part of the Technical Memo (TM) described in Task 4.
64 Mr. David Kelley
December 22, 2022

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N-M-C-CLOVERDALE – LP – SOUTHCREST RESERVOIR
Task 2. Conduct Hydraulic Evaluation
In this task, West Yost will utilize and update the City’s existing water system model and conduct a peak hour and minimum hour on maximum day analysis and a fire flow analysis for existing conditions to evaluate Zone 1 pressures and fire flow availability with and without the Southcrest Reservoir in service.

Although it may be possible to take the tank out of service for less than a year during construction, the analysis will conservatively assume a maximum day demand plus fire flow scenario, which would represent the worst-case condition for which demands would need to be met during construction. The following work will be performed for the hydraulic evaluation:
• Review the Zone 1 distribution system network with the City to determine pipeline improvements completed since the 2010 WSMP and current system operations; • Update hydraulic model demands, coordinate system and pipeline network to include key pipelines and/or facilities completed since the WSMP;
• Assign fire flow requirements based on land uses;
• Perform the following modeling scenarios with and without the Southcrest Reservoir in service:
— Peak hour evaluation for existing maximum day demand conditions — Minimum hour for existing maximum day demand conditions — Fire flow evaluation for existing maximum day demand conditions • Conduct a meeting to review preliminary modeling results.

Task 2 Assumptions
• City to provide current water system markups of distribution system maps showing new pipelines/facilities.
• City to provide annual average and maximum day production by zone for the last three to five years • City to provide address and annual use for the last three to five years for the 20 largest system customers.
• Meeting to present preliminary results will be a virtual meeting.

Task 2 Deliverables
• West Yost will prepare figures showing the current Zone 1 distribution system with maximum demand and fire flow results with and without Southcrest Reservoir.

Task 3. Perform Feasibility Study Peer Review
West Yost will provide a peer review of the 2021 Feasibility Study to identify any data gaps or additional studies that would be required prior to tank construction. The following work will be performed:
• Provide peer review of 2021 Feasibility Study
• Meet with City to review findings and recommendations 65 Mr. David Kelley
December 22, 2022

Page 4 ends

N-M-C-CLOVERDALE – LP – SOUTHCREST RESERVOIR
Task 3 Assumptions
• Meeting to provide peer review results will be virtual • Peer review will assess implementation schedule and identify opportunities to perform work concurrently
Task 3 Deliverables
• West Yost will document results of the peer review in the Task 4 TM.

Task 4. Prepare Technical Memorandum
West Yost will prepare a draft TM documenting the findings and recommendations from Tasks 1 through 3 for City review and comments. West Yost will address City comments on the draft TM and produce a final TM.

Task 4 Assumptions
• City to provide consolidated comments for draft TM.

Task 4 Deliverables
• West Yost will prepare an electronic copy of the draft TM for City review. • West Yost will prepare an electronic copy of the final TM incorporating City comments and up to three hard copies upon request.

Task 5. Conduct Project Management and Meetings
West Yost anticipates the following meetings with City staff:
• Kickoff meeting with City staff to review the Project and key assumptions, including land use and demand criteria to be used for storage and hydraulic evaluations and data needed for evaluations (budgeted in Task 1.)
• Meeting at the completion of Tasks 1 and 2 to review storage analysis and preliminary hydraulic modeling results (budgeted in Tasks 1 and 2). • Meeting at the completion of Task 3 peer review to discuss findings (budgeted in Task 3).

West Yost will also provide overall project management activities to keep this project on schedule and within budget. Communication of project progress will generally be provided via emails and conference calls. Monthly invoices will also be prepared and submitted.

Task 5 Assumptions
• West Yost participation in meetings will be virtual.

Task 5 Deliverables
• West Yost will provide meeting agendas and notes.
• West Yost will provide monthly invoices.
66 Mr. David Kelley
December 22, 2022

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N-M-C-CLOVERDALE – LP – SOUTHCREST RESERVOIR
Optional Task 6. Provide Public Meeting Presentation
West Yost has included an optional services task to present results of the analysis at a public meeting. The following work will be performed:
• Prepare presentation summarizing results of the analysis • Review presentation with City staff
• Attend public meeting and give presentation
Task 6 Assumptions
• West Yost participation in meeting will be virtual.

Task 6 Deliverables
• West Yost will provide draft presentation.
• West Yost will provide updated presentation incorporating City comments.

PROJECT BUDGET
West Yost will perform the Scope of Services described above on a time-and-materials basis based on our 2023 Billing Rate Schedule (Attachment A) for a not-to-exceed budget of $72,800 for the base scope of services, and $4,900 for the Optional Services Task. Table 1 shows a summary of the estimated hours and budget.

Table 1. Estimated Project Hours and Budget
Task Hours Budget, dollars
Task 1. Prepare Storage Capacity Analysis 54 13,700
Task 2. Conduct Hydraulic Evaluation 104 24,100
Task 3. Perform Feasibility Study Peer Review 18 6,900
Task 4. Prepare Technical Memorandum 88 21,400
Task 5. Conduct Project Management and Meetings 22 6,700 Subtotal 242 $72,800
Optional Task 6. Provide Public Meeting Presentation 17 $4,900 Total 259 $77,700

SCHEDULE
West Yost anticipates that the evaluations and Draft TM will take approximately four (4) months to complete after notice to proceed and receipt of requested data. The Final TM will be provided two weeks after receipt of City comments.
67 Mr. David Kelley
December 22, 2022

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N-M-C-CLOVERDALE – LP – SOUTHCREST RESERVOIR
We appreciate the opportunity to provide service to the City on this important project. Please contact me at (925) 408-4149 or [email protected] if you have any questions or require additional information.

Sincerely,

WEST YOST
Polly L. Boissevain, PE
Engineering Manager
RCE #36164
cc: Vanessa Apodaca, West Yost
68 West Yost 2023 Billing Rate Schedule
Attachment A
69 (Effective January 1, 2023 through December 31, 2023)*

POSITIONS

ENGINEERING
Principal/Vice President $338
Engineer/Scientist/Geologist Manager I / II $319 / $334 Principal Engineer/Scientist/Geologist I / II $288 / $307 Senior Engineer/Scientist/Geologist I / II $259 / $272
Associate Engineer/Scientist/Geologist I / II $215 / $231 Engineer/Scientist/Geologist I / II $173 / $201
Engineering Aide $101
Field Monitoring Services $125
Administrative I / II / III / IV $92 / $115 / $138 / $152

ENGINEERING TECHNOLOGY
Engineering Tech Manager I / II $332 / $334
Principal Tech Specialist I / II $305 / $315
Senior Tech Specialist I / II $279 / $291
Senior GIS Analyst $252
GIS Analyst $239
Technical Specialist I / II / III / IV $178 / $203 / $228 / $254 Technical Analyst I / II $128 / $152
Technical Analyst Intern $103
Cross-Connection Control Specialist I / II / III / IV $133 / $144 / $162 / $180 CAD Manager $201
CAD Designer I / II $156 / $176

CONSTRUCTION MANAGEMENT
Senior Construction Manager $322
Construction Manager I / II / III / IV $197 / $211 / $224 / $283 Resident Inspector (Prevailing Wage Groups 4 / 3 / 2 / 1) $172 / $191 / $213 / $221 Apprentice Inspector $156
CM Administrative I / II $83 / $112
Field Services $221
2023 Billing Rate Schedule

LABOR CHARGES
(DOLLARS PER HOUR)
■ Hourly rates include Technology and Communication charges such as general and CAD computer, software, telephone, routine in-house copies/prints, postage, miscellaneous supplies, and other incidental project expenses. ■ Outside Services such as vendor reproductions, prints, shipping, and major West Yost reproduction efforts, as well as Engineering Supplies, etc. will be billed at actual cost plus 15%. ■ The Federal Mileage Rate will be used for mileage charges and will be based on the Federal Mileage Rate applicable to when the mileage costs were incurred. Travel other than mileage will be billed at cost. ■ Subconsultants will be billed at actual cost plus 10%. ■ Expert witness, research, technical review, analysis, preparation and meetings billed at 150% of standard hourly rates. Expert witness testimony and depositions billed at 200% of standard hourly rates. ■ A Finance Charge of 1.5% per month (an Annual Rate of 18%) on the unpaid balance will be added to invoice amounts if not paid within 45 days from the date of the invoice. * This schedule is updated annually Page 1 of 2 70
(Effective January 1, 2023 through December 31, 2023)*
Equipment Charges

EQUIPMENT
2" Purge Pump & Control Box $300 / day
Aquacalc / Pygmy or AA Flow Meter $28 / day
Emergency SCADA System $35 / day
Field Vehicles (Groundwater) $1 / mile
Gas Detector $80 / day
Generator $60 / day
Hydrant Pressure Gauge $10 / day
Hydrant Pressure Recorder, Impulse (Transient) $55 / day Hydrant Pressure Recorder, Standard $40 / day
Low Flow Pump Back Pack $135 / day
Low Flow Pump Controller $200 / day
Powers Water Level Meter $32 / day
Precision Water Level Meter 300ft $30 / day
Precision Water Level Meter 500ft $40 / day
Precision Water Level Meter 700ft $45 / day
QED Sample Pro Bladder Pump $65 / day
Stainless Steel Wire per foot $0 / day
Storage Tank $20 / day
Sump Pump $24 / day
Transducer Components (per installation) $23 / day
Trimble GPS – Geo 7x $220 / day
Tube Length Counter $22 / day
Turbidity Meter $30 / day
Vehicle (Construction Management) $10 / hour
Water Flow Probe Meter $20 / day
Water Quality Meter $50 / day
Water Quality Multimeter $185 / day
Well Sounder $30 / day

BILLING RATES
2023 Billing Rate Schedule
* This schedule is updated annually Page 2 of 2 71
City Council/Successor Agency
Agenda Item Summary Agenda Item:

Meeting Date:

G.1
April 12, 2023
Agenda Section:

New Business
Staff Contact:

Susie Holmes, Finance Director
Agenda Item Title
Presentation and acceptance of the FY 2021/22 City of Cloverdale Audited Financial Statements _______________________________________________________________________________________ Recommended Council Action(s):

Review and accept by motion the FY 2021/22 City of Cloverdale Audited Financial Statements ________________________________________________________________________________________ Background:

Local governments are required to have an independent auditor review their finances each year and produce an Independent Auditors’ Report. The Governmental Accounting Standards Board (GASB) provides principles and guidelines against which that jurisdiction’s finances are evaluated.

Regardless of how many Funds a jurisdiction may use for accounting purposes, GASB Statement 34 requires that for purposes of its audit, a city’s Funds are grouped into three broad categories; major governmental funds, major enterprise (or business) funds, and non-major funds. Major Funds are those that have assets, liabilities, revenues or expenditures equal to or greater than 10% of their Fund Type total, five percent of the grand total of all the City’s Funds.

Governmental Accounting Standards Board (GASB) 34 was intended to improve the public’s ability to read and understand the audits of public agencies. Among its components was the creation of the Management’s Discussion and Analysis (MD&A). The MD&A offers a narrative summary of the jurisdiction’s annual financial condition.

Governmental Accounting Standards Board (GASB) 68, Accounting and Financial Reporting for Pensions, was required for fiscal years beginning after June 15, 2014. Its purpose is to improve accounting and financial reporting by state and local governments for pensions and pension liabilities.

Governmental Accounting Standards Board (GASB) 75, Accounting and Financial Reporting for Postemployment benefits other than pensions, was required for years beginning after June 2017. Its purpose is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pension.

Governmental Accounting Standards Board (GASB) 87, Leases, was required for years beginning after June 15, 2021. Its purpose is to better meet the information needs of the financial statement users by improving accounting and financial reporting for leases by governments.

An Audit is typically made up of a cover letter from the independent auditor; the MD&A; the Basic Financial Statements, including Notes; Required Supplementary Information (RSI), including comparisons between budget and actual; Supplementary information, including combining balance sheets; and Other Reports, including reports on internal control, a summary of findings, and a summary of prior year findings. __________________________________________________________________________________ 72 City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. G.1

Page 2 of 3 ends

Summary:

The City’s Independent Auditing firm conducting the Annual Audit of the FY 2021/22 City of Cloverdale Audited Financial Statements is Cropper Accountancy Corporation. Cropper Accountancy Corporation is a boutique accounting firm formed in 1986, primarily to provide audit, accounting and tax services to nonprofit organizations and local governmental agencies. This is the second year of a three-year contract with the audit firm Cropper Accountancy.

The Annual Financial Report includes Management’s Discussion and Analysis (MD&A), which presents a simple narrative introduction, overview and analysis of the City’s financial activities of the City of the fiscal year ended June 30, 2022. The MD&A is found on Page 4-12 of the audit report. Outlined below are key financial highlights in the MD&A:
• The City’s total net position June 30, 2022 was $99,036,366, a decrease of $663,293 over the prior year.
• Total City revenues, including program and general revenues, were $16,648,177, a decrease of $797,062 from the prior year, grants and contributions increased $1,218,757 while taxes decreased by $294,400. Total expenses were $17,271,873 a decrease of $1,088,273 or 5.9% over the prior year.
• Governmental Activities Program Revenues were $3,858,642, an increase of $327,661 from fiscal year 2021’s $3,530,981. A decrease in charges for services and overhead account for $988,696 of the change, while the grants and contributions increased by $1,316,357. Tax revenue was $7,255,675 in 2022 which represents a 3.9% decrease from the prior year. Other General Revenues were ($39,590) this represents the amount of interest expensed to account for investment market value. A decrease of $60,618 over prior year.
• Governmental Activities Program Expenses were $10,815,423 in fiscal year 2022, a decrease of $893,558 from 2021 which was $11,708,981.
• Program revenues from Business-Type Activities were $5,573,450 in fiscal year 2022, down from $6,343,155 the prior year. Business-type activities revenue this year is comprised of charges for services which decreased $186,319 primarily due to a decrease in water usage charges. In FY 2021 total water usage charges and water shortage surcharges were $3,768,930 and in FY 2022 total charges were $3,310,834 a reduction of $458,096 despite the 6% rate increase imposed on July 1, 2021.
• Governmental Activities revenues and charges for service, excluding operating grants and contributions were $8,752,737 a decrease of $1,343,714 from 2021. • General Fund total expenditures were $7,736,242 a decrease of $893,558 over prior year amounts. • General fund balance is $7,949,500 ($4,130,776 unrestricted), an increase of $1,745,900 from the prior year’s fund balance of $6,203,600.

John Cropper, CPA will attend the City Council meeting to present the report and answer questions from the Council and public.
73 City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. G.1

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________________________________________________________________________________________ Options:

N/A
________________________________________________________________________________________ Subcommittee Recommendation:

The Finance Administration and Police Subcommittee reviewed the FY 2021/22 audited financial statements on April 3, 2023.
________________________________________________________________________________________ Budget/Financial Impact:

The purpose of an audit is to review a prior year’s financial activities. ________________________________________________________________________________________ Attachments:

1. FY 2021/22 Audited Financial Statements

2. Statement on Auditing Standards from Cropper Accountancy

3. Presentation from Cropper Accountancy
74 CITY OF CLOVERDALE, CALIFORNIA

BASIC FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED
JUNE 30, 2022
75 CITY OF CLOVERDALE, CALIFORNIA

BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Page
Independent Auditors’ Report 1
Management’s Discussion and Analysis 4
Government-Wide Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position 15
Statement of Activities and Changes in Net Position 16
Governmental Fund Financial Statements:

Balance Sheet 19
Reconciliation of Government Funds Balance Sheet to the Statement of Net Position 20
Statement of Revenues, Expenditures, and Changes in Fund Balance 21 Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to Statement of Activities 22 Proprietary Fund Financial Statements:

Statement of Net Position 23
Statement of Revenues, Expenses, and Changes in Fund Net Position 24 Statement of Cash Flows 25
Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position – Private Purpose Trust 26 Statement of Changes in Fiduciary Net Position – Private Purpose Trust 27 Notes to the Basic Financial Statements 28
Required Supplementary Information:

Budgetary Comparison Schedule – General Fund 63
Note to RSI: Note A – Explanation of Differences between Budgetary Inflows and Outflows and GAAP Revenues and Expenditures 64 Budgetary Comparison Schedule – Employee Retirement Special Revenue Fund 65 76 Required Supplementary Information (continued):

Schedule of Changes in City’s Total Other Postemployment Benefit (OPEB) Liability and Related Ratios 66
Schedule of the Proportionate Share of the Net Pension Liability 67 Schedule of the City’s Employee Pension Plan Contributions 68 Supplementary Information:

Combining Statements and Individual Fund Schedules – Non-Major Funds:

Combining Balance Sheets 70
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 74
Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 79 77 2700 Ygnacio Valley Road, Ste 270
Walnut Creek, CA 94598
(925) 932-3860 tel
(925) 476-9930 efax
INDEPENDENT AUDITORS’ REPORT
To the City Council
City of Cloverdale, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Cloverdale, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Cloverdale, California’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Cloverdale, California, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Cloverdale, California, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Cloverdale, California’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 78
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Cloverdale, California’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Cloverdale, California’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, schedule of changes in the City’s net OPEB liability and related ratios, schedule of the City’s proportionate share of the net pension liability, and schedule of the City’s employer pension plan contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic 2 79
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CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
This section, Management’s Discussion & Analysis (MD&A), presents a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022 . Please read this section in conjunction with the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
 The City’s total net position June 30, 2022 was $99,036,366, a decrease of $663,293 (including a prior period adjustment of $39,597) over the prior year.
 Total City revenues, including program and general revenues, were $16,648,177, a decrease of $797,062 from the prior year, grants and contributions increased $1,218,757 while taxes decreased by $294,400. Total expenses were $17,271,873 a decrease of $1,088,273 or 5.9% over the prior year.  Governmental Activities Program Revenues were $3,858,642, an increase of $327,661 from fiscal year 2021’s $3,530,981. A decrease in charges for services and overhead account for $988,696 of the change, while the grants and contributions increased by $1,316,357. Tax revenue was $7,255,675 in 2022 which represents a 3.9% decrease from the prior year. Other General Revenues were ($39,590) this represents the amount of interest expensed to account for investment market value. A decrease of $60,618 over prior year.
 Governmental Activities Program Expenses were $10,815,423 in fiscal year 2022, a decrease of $893,558 from 2021 which was $11,708,981.
 Program revenues from Business-Type Activities were $5,573,450 in fiscal year 2022, down from $6,343,155 the prior year. Business-type activities revenue this year is comprised of charges for services which decreased $186,319 primarily due to a decrease in water usage charges. In FY 2021 total water usage charges and water shortage surcharges were $3,768,930 and in FY 2022 total charges were $3,310,834 a reduction of $458,096 despite the 6% rate increase imposed on July 1, 2021.  Governmental Activities revenues and charges for service, excluding operating grants and contributions were $8,752,737 a decrease of $1,343,714 from 2021.  General Fund total expenditures were $7,736,242 a decrease of $893,558 over prior year amounts.  General fund balance is $7,949,500 ($4,130,776 unrestricted), an increase of $1,745,900 from the prior year’s fund balance of $6,203,600.

USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The components are:
 The government-wide financial statements which include the Statement of Net Position and the Statement of Activities. These statements provide information about the activities of the City as a whole.
 Fund financial statements describe how City services are financed in the short term as well as what resources are available for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds.
 Notes to the Financial Statements.

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CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
Reporting the City as a Whole
The Statement of Net Position and the Statement of Activities (Government-wide) A frequently asked question regarding the City’s financial health is whether the year’s activities contributed positively to the overall financial well-being. The Statement of Net Position and the Statement of Activities report information about the City as a whole that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All of the current year’s revenues and expenses are accounted for, regardless of when cash is received or paid.

These two statements report the City’s net position and changes thereto. Net position, the difference between assets and liabilities, is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in net position are an indicator of whether the financial health is improving or deteriorating. It is also important to consider other non-financial factors such as changes in the City’s property tax base or condition of the City’s roads and other infrastructure assets to accurately assess the overall health of the City.

The Statement of Net Position and the Statement of Activities present information about the following:

Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety, public works, and community services. Property taxes, sales taxes, vehicle license fees, transient occupancy taxes and franchise fees finance most of these activities.

Business (proprietary fund) type activities – The City charges a fee to customers to cover all or most of the cost of the services provided. The City’s water, sewer, transit, and airport operations are reported in this category.

Fiduciary unit – The City of Cloverdale elected to become the Successor Agency for the former Redevelopment Agency including the housing functions. The financial data relating to the Successor Agency are reported in a separate fiduciary fund.

Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law or by bond covenants.

However, management establishes many other funds that aid in the administration of resources for particular purposes or meet legal responsibilities associated with the usage of certain taxes, grants, and other money. The City’s two kinds of funds, governmental and proprietary, use different accounting approaches as explained below.

Governmental funds – Most of the City’s basic services are reported in governmental funds.

Governmental funds focus on how resources flow in and out with the balances remaining at year end that are available for spending. These funds are reported using an accounting method called modified accrual, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the 5 82

CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds through a reconciliation statement.

Business Type (Proprietary) funds – When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities.

The City’s combined net position for the fiscal year ended June 30, 2022 was $99,036,366. The City accounts for its water, sewer and airport operations as enterprise funds. These enterprise funds are categorized as Business-Type Activities on Table 1.

This space is intentionally left blank.

Total
Percentage
Change
2022 2021 2022 2021 2022 2021
Assets:

Current and other assets 15,235,477 $ 14,008,105 $ 7,949,754 $ 6,141,343 $ 23,185,231 $ 20,149,448 $ 15.1% Noncurrent assets 50,610,955 51,716,340 44,863,245 47,276,284 95,474,200 98,992,624 -3.6% Total Assets $ 65,724,445 65,846,432 $ 52,812,999 $ 53,417,627 $ 118,659,431 $ 119,142,072 $ -0.4% Deferred Outflows of Resources:

Pension plan $ 2,064,557 $ 1,962,947 $ 433,630 $ 533,068 $ 2,498,187 $ 2,496,015 0.1% Other Post-Employment Benefits 174,561 279,885 246,206 246,206 420,767 526,091 -20.0% Total Deferred Outflows of Resources $ 2,239,118 $ 2,242,832 $ 679,836 $ 779,274 $ 2,918,954 $ 3,022,106 -3.4% Liabilities
Current Liabilities $ 1,175,484 $ 1,433,382 $ 1,071,887 $ 999,465 $ 2,247,371 $ 2,432,847 -7.6% Long-term obligations 7,643,311 11,123,117 6,610,382 8,050,877 14,253,693 19,173,994 -25.7% Total Liabilities $ 8,818,795 $ 7,682,269 12,556,499 $ $ 9,050,342 $ 16,501,064 $ 21,606,841 -23.6% Deferred Inflows of Resources:

Pension plan $ 3,924,719 $ 194,864 $ 1,228,795 $ 65,747 $ 5,153,514 $ 1877.5% 260,611 Other Post-Employment Benefits 556,572 317,645 330,869 279,422 887,441 597,067 48.6% Total Deferred Inflows of Resources $ 4,481,291 $ 512,509 $ 1,559,664 $ 345,169 $ 6,040,955 $ 857,678 604.3% Net Position: - -
Net investment in capital assets $ 51,025,859 50,000,967 $ 43,886,489 $ 44, $ 93,887,456 720,171 $ $ 95,746,030 -1.9% Restricted 6,204,869 6,480,789 976,756 2,542,399 7,181,625 9,023,188 -20.4% Unrestricted (1,420,372) (2,608,379) (612,343) (2,461,180) (2,032,715) (5,069,559) -59.9% Total Net Position $ 54,898,269 54,785,464 $ 44,250,902 $ 44,801,390 $ 99,036,366 $ $ 99,699,659 -0.7% Governmental Activities Business-Type Activities Total
Table 1
City of Cloverdale's Net Position
(Full Accrual, in Whole Dollars)
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CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
The City’s net position for governmental activities was $54,785,464 as of June 30, 2022, a decrease of $112,805 from the prior year. For the City’s Business-type activities, net position was $44,250,902 at June 30, 2022, a decrease of $550,488 and revenues were insufficient to cover operating expenses in the City’s Business-Type Activities by this same amount.

Governmental Activity General revenues from tax decreased by $294,400 from fiscal year 2021. A large portion of this decrease is the result of a reallocation of the Redevelopment Property Tax Trust Fund (RPTTF) which was $0 in 2022 and $264,258 in 2021.

Business-type revenues decreased $186,319 and expenses followed with a reduction in the amount of $194,715.

Total
Percentage
Change
2022 2021 2022 2021 2022 2021
Revenues:

Program revenues:

Charges for services and overhead 1,536,652 $ 2,525,348 $ 5,449,398 $ 5,635,717 $ 6,986,050 $ 8,161,065 $ -14.4% Operating grants and contributions 2,321,990 1,005,633 89,670 187,270 2,411,660 1,192,903 102.2% Capital grants and contributions - - 34,382 520,168 34,382 520,168 -93.4% General revenues: - -
Taxes 7,255,675 7,550,075 - - 7,255,675 7,550,075 -3.9% Other (39,590) 21,028 - - (39,590) 21,028 -288.3%
Total Revenues $ 11,102,084 11,074,727 $ 5,573,450 $ 6,343,155 $ 16,648,177 $ 17,445,239 $ -4.6% Expenses:

General government 2,635,287 $ 4,002,145 $ - $ - $ 2,635,287 $ 4,002,145 $ -34.2% Public safety 4,662,342 4,680,897 - - 4,662,342 4,680,897 -0.4% Public works 2,126,102 1,717,233 - - 2,126,102 1,717,233 23.8% Planning 717,243 707,466 - - 717,243 707,466 1.4%
Parks & facilities 674,449 601,240 - - 674,449 601,240 12.2% Water - - 3,448,102 3,619,368 3,448,102 3,619,368 -4.7% Sewer - - 2,773,162 2,807,091 2,773,162 2,807,091 -1.2% Airport - 235,186 - 224,700 235,186 224,700 4.7%
Total Expenses $ 11,708,981 10,815,423 $ 6,456,450 $ $ 6,651,159 $ 17,271,873 $ 18,360,140 -5.9% Change in Net Position
Before transfers 259,304 (606,897) (883,000) (308,004) (623,696) (914,901) -31.8% Transfers (332,512) (412,265) 332,512 412,265 - 0.0% -
Change in Net Position (73,208) (1,019,162) (550,488) 104,261 (623,696) (914,901) -31.8% Net Position - Beginning $ 55,917,431 54,898,269 $ 44,801,390 44,697,129 99,699,659 100,614,560 -0.9% Prior period adjustment (39,597) - - (39,597) - -
Net Position - Ending $ 54,898,269 54,785,464 $ 44,250,902 $ 44,801,390 $ 99,036,366 $ $ 99,699,659 -0.7% Table 2
City of Cloverdale's Statement of Activities
(Full Accrual, in Whole Dollars)
Governmental Activities Business-Type Activities Total
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CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
Following Table 3, variances in the City’s general fund under the modified accrual method, measuring cash and all other financial assets that can readily be converted to cash, are discussed.

General Fund Highlights
The City General Fund Charges for Services were down by $988,696 over 2021 and expenses were also down $893,558. American Rescue Plan Act Grant funds in the amount of $1,035,000 were received offsetting the revenue shortfall. – The ARPA funds were transferred into the General Fund and set aside in restricted funds for Water, Wastewater and Broadband projects. These funds must be spent by FY 2024 are over inflating the General Fund balance sheet accounts including cash and fund balance.

Variance from Percentage
Final Budget - Favorable Over (Under)
Budget Actual (Unfavorable) Budget
Revenue $ 7,650,326 7,437,463$ $ (212,863) -2.8%
Expenditures (9,454,597) (7,941,668) 1,512,929 -16.0%
Transfer in (out) net 2,028,117 2,250,105 221,988 10.9% $ 223,846 1,745,900$ $ 1,522,054 680.0%
Table 3
General Fund Budget Analysis
Fiscal Year 2021-22
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CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
THE CITY’S FUNDS
For the year ended June 30, 2022, the City’s governmental funds reported a combined fund balance of $14,158,831, up $1,469,835 or 11.6% from the prior year’s balance of $12,469,835.

The City’s enterprise funds had an ending net position of $44,250,902 a decrease of $550,488 from the prior year’s balance of $44,801,390. This amount reflects the changes in all business type activities for 2022.

CAPITAL ASSETS
All of the City’s capital assets have been reported in the financial statements in accordance with Governmental Accounting Standards Board (GASB) Statement Number 34, including infrastructure assets such as roads, sidewalks, bridges, drainage systems, and street lighting systems as well as treatment plants, water mains, and sewer lines. Values are reported at historical cost or if not available, estimated historical cost.

Significant capital asset activity for fiscal year 2021-22 consisted of:

Governmental Activities:

Several City street improvement projects including new ADA compliant curb and sidewalks on Cloverdale Boulevard, the Furber/Treadway Signalization Project, and Vista View street reconstruction projects were completed. Preliminary design work for a new Butler Building to be located at the Corporation Yard continued.

New audio/video equipment was installed at the Cloverdale Performing Arts Center to enhance virtual meetings. The City’s continues replacing the aging vehicle fleet, in fiscal year 2021-22 there was a shortage of vehicles, a vehicle was ordered, but not received until FY 2022-23.

CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
The City made major progress on some of the Parks/Plaza projects including the purchase and installation of the Plaza Restroom and two new basketball courts at City Park.

Business-Type Activities:

The City completed several projects in the Sewer Department including the installation of a new turbine transfer pump, and continued with the multi-year pipe relining project.

The Water Department continues with the replacement of meters, a city-wide project, continued a GPS/GIS Utility Mapping project of the water distribution system, wastewater collection system and storm water collection system.

Detailed information on capital assets is presented in Note 7 of the financial statements, starting on page 41XX of the June 30, 2022 notes to the basic financial statements.

DEBT
The following is a summary of the City’s long-term obligations as of June 30, 2022:

Long-Term Debt
The City participated in a 2020 Refunding of the 2015 Tax Allocation Refunding Bonds which allowed for a total savings through August 2038 of $4,508,833, the savings will be recognized by The City as well as other local agencies including the Sonoma County School Districts, Cloverdale Health Care, Cloverdale Fire Protection District as well as other local agencies. The City issued no additional long-term debt, direct placements or direct borrowing in Fiscal Year 2021-22. In addition, the City adopted the provision of Government Accounting Standards Board Statement Number 88 which results in additional disclosures and classifications of debt into categories of bonded det, direct placements and direct borrowings. The City made all required debt service payments on its direct borrowings during the fiscal year. More information about the City’s Long-term debt can be found in Note 8 A of the June 30, 2022 basic financial statements.

Employee Other Post-Employment Obligation (OPEB)
The City’s Total Other Post-Employment Benefit Plan (OPEB) obligation for retiree medical benefits was $2,693,564 at the end of fiscal year 2021-22. The City has not prefunded its OPEB obligation and that total obligation decreased about $493,500 during FY 2021-22. The decrease was a result of Actual vs. expected experience and assumption changes in Year 2021-22. More detailed information about the City’s OPEB Plan and changes in the OPEB total liability can be found in Note 12 G of the June 30, 2022 notes to the basic financial statement.

Net Pension Liability
The City’s net pension liability of $6,773,066 decreased in fiscal year 2021-22 by $4,181,969 compared to fiscal year 2021 as a result of the performance of the CalPERS cost sharing plan the increase was realized by both the miscellaneous (43.5%) and safety (56.5%) employee cost sharing plan. Detailed information about the City’s pension plan can be found in Note 13 of the June 30, 2022 notes to the basic financial statements.

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CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022

ECONOMIC FACTORS AND NEXT YEARS BUDGET AND RATES
As a result of the dissolution of the City’s redevelopment agency, the City receives periodic distributions from the County for use in paying down enforceable obligations of the former Redevelopment Agency (RDA). The loss of tax increment revenues from the dissolution of the RDA has required the City to reconfigure its future budgets for operational and capital needs. The tax distributions being received as part of the dissolution process are currently covering the debt service payments and the administration costs of the former agency.

The dissolution law required that the County Auditor-Controller complete an Agreed Upon Procedures, or Due Diligence Review (DDR) report for each RDA no later than October 1, 2012 to identify the amount of available revenues at June 30, 2012. The reports were based on unaudited information, and overstated the available cash in the RDA, resulting in a deficit in the Successor Agency fund. The City disputed the reports and requested reimbursement on the 17-18 Recognized Obligation Payment Schedule (ROPS).

The dissolution law also required that the State Controller’s Office (SCO) review asset transfers that occurred between the former RDA and the City or County that created the RDA. As a part of its Asset Transfer Review, the SCO determined that the cash flow loan repayment made on June 30, 2011 from the Redevelopment Agency to the City was an unallowable transfer of assets and ordered that $925,520 be returned from the General Fund to the Successor Agency.

In order to comply with the SCO’s order, the City and the Successor Agency entered into a repayment agreement in May of 2015, providing repayment from the City to the Successor Agency over a period of 15 years, in annual payments of $61,701 each. In July of 2015 the agreement was approved by the Successor Agency Oversight Board and forwarded to the Department of Finance (DOF) and the SCO for review. DOF responded that it would not make a determination about whether or not the agreement complies with the SCO’s order. The State determined that although the City’s available cash was overstated, the City did in fact receive the funds in question and therefore is subject to repayment.

The dissolution process includes a provision for loans from cities to their former RDAs to be approved on the ROPS. The City and Successor Agency entered into a restated loan agreement for the Successor Agency to repay the $826,600 principal portion of the 2011 loan plus 3% annual interest, pursuant to HSC section 34191.4 (b)(3). The restated loan agreement was shown as an enforceable obligation on ROPS 15- 16B, and subsequently approved by the DOF. Annual payments are limited to one-half of the increase between the amount distributed to the taxing entities in that fiscal year and the amount distributed to taxing entities in FY 2012–13. Also, 20% of any loan repayment must be transferred to the Low ModerateIncome Housing Fund. The loan was fully repaid, with a final payment in July 2019.

The City completed the process of refunding the Community Development Successor Agency 2015 Tax Allocation Bonds, the City as well as other local entities will share in the tax savings benefit in an amount exceeding four million dollars over the life of the bond.

In order to reconfigure the City’s ability to sustain the current level of essential municipal services, the City is considering options to establish more discretionary revenues. In 2014 the voters in the City of Cloverdale approved a 3% Utility Users Tax (UUT) which became effective in January 2015 for a period of eight years and in 2019 the voters approved to continue the tax in perpetuity. 11 88

CITY OF CLOVERDALE, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
In 2016 the City imposed a cannabis business tax on every such business operating in the city, the City Cloverdale City Council has authorized a rate of 4.5% on gross receipts and may, in its discretion, at any time by resolution implement any rate up to 10%. In October 2018, the City began collecting the Cannabis Business Tax, also referred to as Measure P funds. In March 2022 the City Council approved a temporary discount on the cannabis tax rate of 3.5% for delivery and retail and 1% for all other.

The City’s past challenges regarding water capacity have been largely resolved. The Water System Improvement Project was completed in 2015, funded through a low-interest loan and grant funding from the USDA. Two new wells were brought on-line, treatment capacity was increased, additional reservoir constructed, a new transmission main installed, and system control (SCADA) improvements completed.

Currently, the City water infrastructure is able to meet demand for domestic, commercial and firefighting needs. The remaining limitations to water production are regional issues such as drought and management of the Russian River watershed.

To qualify for the USDA loan that funded the water system improvements discussed above, it was imperative that the City demonstrate its ability to repay the debt that would be created by the arrangement.

A rate study was completed by The Reed Group in 2016 and the City was able to gain approval with community support to subsequently increase the water rates to levels that the City believes will be adequate for its purposes. The rate study included a new rate structure which ensures equity in user charges across all categories and allows for a water usage surcharge in times of drought which offsets increases in water production costs and encourages conservation.

The Master Plan for the Water and Wastewater Enterprise and a new rate study were completed and updated in Fiscal Year 2020-21. The focus should was placed on Water Enterprise infrastructure improvements and reliability, specifically to address water distribution system deficiencies. As well, the study addresses the needs in both the wastewater collection system and treatment and disposal system.

The City adopted National Pollutant Discharge Elimination System (NPDES) permit number CA0022977 on September 6, 2018, that expires October 31, 2023. Additional treatment technology may be required in the future based on population and state requirements.

Going forward the State of California and U.S. Federal Government decisions continue to have an impact on the future undertakings that the City must face. An example of this would be the mandated participation in a municipal storm sewer system permit and the programs associated with it. There are also more and more regional initiatives in which the City must participate as part of permit compliance or to qualify for future financial assistance. These programs require investment of already limited resources available for the maintenance of critical infrastructure and protection of the community’s best interests.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to show the city’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact Finance Director Susie Holmes at City of Cloverdale, 124 North Cloverdale Boulevard, Cloverdale, California 95425.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
14 91
City of Cloverdale
Government-Wide
Statement of Net Position
June 30, 2022
Governmental Business-Type
ASSETS Activities Activites Total
Current Assets:

Cash and cash equivalents $ 13,769,410 $ 7,188,059 $ 20,957,469 Net receivables 1,320,537 685,975 2,006,512
Due from other funds 63,776 - 63,776
Prepayments 81,754 23,223 104,977
Inventory - 52,497 52,497
Total Current Assets 15,235,477 7,949,754 23,185,231
Noncurrent Assets:

Restricted cash and cash equivalents - 976,756 976,756
Capital assets not being depreciated 27,055,886 18,896,586 45,952,472 Capital assets being depreciated, net 23,475,829 24,989,903 48,465,732 Right-to-use lease asset 79,240 79,240
Total Noncurrent Assets 50,610,955 44,863,245 95,474,200 Total Assets 65,846,432 52,812,999 118,659,431

DEFERRED OUTFLOWS OF RESOURCES
Other post-employment benefit items 174,561 246,206 420,767 Pension plan related items 2,064,557 433,630 2,498,187
Total Deferred Outflows of Resources 2,239,118 679,836 2,918,954

LIABILITIES
Current Liabilites:

Accounts payable 342,452 298,832 641,284
Accrued liabilities 396,405 43,530 439,935
Due to other funds - 63,776 63,776
Payable other governments 46,007 - 46,007
Compensated absences 276,172 155,024 431,196
Deposits 15,610 277,318 292,928
Accrued interest payable - 23,080 23,080
Long-term liabilities due in one year 98,838 210,327 309,165 Total Current Liabilities 1,175,484 1,071,887 2,247,371 Noncurrent Liabilites (due in more than one year):

Compensated absences 276,172 155,024 431,196
Loans - 359,717 359,717
Lease liability 79,240 - 79,240
Installment agreements - 3,485,000 3,485,000
Successor agency repayment agreement 431,910 - 431,910
Other post-employment benefit liability 1,396,195 1,297,369 2,693,564 Payable other governments - - -
Net pension liability 5,459,794 1,313,272 6,773,066
Total Noncurrent Liabilities (due in more than one year) 7,643,311 6,610,382 14,253,693 Total Liabilities 8,818,795 7,682,269 16,501,064

DEFERRED INFLOWS OF RESOURCES
Pension plan 3,924,719 1,228,795 5,153,514
Other post-employment benefit plan 556,572 330,869 887,441 Total Deferred Inflows of Resources 4,481,291 1,559,664 6,040,955

NET POSITION
Net investment in capital assets 50,000,967 43,886,489 93,887,456 Restricted 6,204,869 976,756 7,181,625
Unrestricted (deficit) (1,420,372) (612,343) (2,032,715) Total Net Position $ 54,785,464 $ 44,250,902 $ 99,036,366 The accompanying notes are an integral part of the financial statements 15 92
City of Cloverdale
Government-Wide
Statement of Activities and Changes in Net Position
For the year ended June 30, 2022
Operating Capital
Charges Grants and Grants and Governmental Business-type Functions/Programs Expenses for Services Contributions Contributions Activities Activities Total City Government:

Governmental Activities
General government 2,635,287 $ 1,001,830 $ 1,390,775 $ - $ (242,682) $ - $ (242,682) $ Public safety 4,662,342 77,449 125,647 - (4,459,246) - (4,459,246) Planning 717,243 243,626 - - (473,617) - (473,617)
Parks and recreation 674,449 1,655 - - (672,794) - (672,794) Public works 2,126,102 212,092 805,568 - (1,108,442) - (1,108,442) Housing and development - - - - - - -
Total Governmental Activities 10,815,423 1,536,652 2,321,990 - (6,956,781) - (6,956,781) Business-Type Activities
Water 3,448,102 3,319,277 - 34,382 - (94,443) (94,443)
Wastewater 2,773,162 1,984,764 171 - - (788,227) (788,227) Airport 235,186 145,357 89,499 - - (330) (330)
Total Business-Type Activities 6,456,450 5,449,398 89,670 34,382 - (883,000) (883,000) Total City Government 17,271,873 $ 6,986,050 $ 2,411,660 $ 34,382 $ (6,956,781) (883,000) (7,839,781) General revenues, special items and transfersGeneral revenues:

Taxes:

Property taxes 2,841,179 - 2,841,179
Sales taxes 1,479,795 - 1,479,795
Pension tax 1,409,620 - 1,409,620Other taxes 1,525,081 - 1,525,081 Other general revenues (39,590) - (39,590)
Transfers (332,512) 332,512 -
Total general revenues and transfers 6,883,573 332,512 7,216,085 Change in net position (73,208) (550,488) (623,696)
54,898,269 44,801,390 99,699,659
(39,597) - (39,597)
54,858,672 44,801,390 99,660,062
Net position - ending 54,785,464 $ 44,250,902 $ 99,036,366 $ Prior period adjustment, correction of an errorNet position - beginning, as restated Net (Expenses) Revenue and
Net position - beginning, as previously stated
Program Revenues
City Government
Changes in Net Position
The accompanying notes are an integral part of the financial statements 16 93
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17 94

GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
18 95
City of Cloverdale
Governmental Funds
Balance Sheet
June 30, 2022
s
General Fund
Employee
Retirement
American Rescue
Plan Act
Other
Governmental
Funds Total
ASSETS
Cash and investments 7,646,606 $ 802,243 $ 537 $ 5,320,024 $ $ 13,769,410 Receivables:

Taxes 622,918 68,612 - - 691,530
Accounts 230,499 - - 28,046 258,545
Interest 2,553 480 305 3,527 6,865
Intergovernmental - - - 111,638 111,638
Loans - - - 250,000 250,000
Assessments - - - 1,959 1,959
Due from other funds 252,060 - - - 252,060
Prepayments 77,292 - - 4,462 81,754
Total Assets 8,831,928 $ 871,335 $ 842 $ 5,719,656 $ 15,423,761

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 243,518 $ - $ - $ 98,934 $ 342,452
Accrued liabilities 577,293 - - 95,284 672,577
Due to other governments 46,007 - - - 46,007
Due to other funds - - - 188,284 188,284
Deposits 15,610 - - - 15,610
Total Liabilities 882,428 - - 382,502 1,264,930
Fund Balance:

Non-spendable 77,292 - - 4,462 81,754
Restricted for affordable housing - - - 174,315 174,315 Restricted for employee retirement - 871,335 - - 871,335 Restricted for capital facilities - - - 2,933,585 2,933,585 Restricted for streets and thoroughfares - - - 967,622 967,622 Restricted for parks and parkland - - - 1,257,170 1,257,170 Restricted for COVID relief - - 842 - 842
Committed for special purposes 2,306,047 - - - 2,306,047 Assigned for equipment and projects 1,533,785 - - - 1,533,785 Unassigned 4,032,376 - - - 4,032,376
Total Fund Balance 7,949,500 871,335 842 5,337,154 14,158,831 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 8,831,928 $ 871,335 $ 842 $ 5,719,656 $ 15,423,761 The accompanying notes are an integral part of the financial statements 19 96
City of Cloverdale
Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2022
Total Governmental Fund Balances $ 14,158,831
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. 50,610,955
Other post-employment benefit obligations do not require the use of current financial resources and are not reported in the funds. (1,396,195)
Some liabilities such as compensated absences and insurance assessments are not due and payable in the current period and are therefore not reported in the funds. (276,172) The loan repayment agreement to the successor agency does not require the use of current financial resources and is not reported in the funds. (530,748)
The net pension liability does not require the use of current financial resources and is therefore not reported in the funds. (5,459,794)
Deferred outflows of resources related to the net pension liability and OPEB do not use current financial resources and are not therefore reported in the funds. 2,239,118 Deferred inflows of resources from pension and OPEB items do not provide current financial resources. (4,481,291) Long-term lease liabilities are not due and payable in the current period, and are not reported in the funds (79,240) Statement of Net Position of Governmental Activities $ 54,785,464 The accompanying notes are an integral part of the financial statements 20 97
City of Cloverdale
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 2022
General Fund
Employee
Retirement
American Rescue
Plan Act
Other
Governmental
Funds
Total
Governmental
Funds

REVENUES
Taxes $ 5,538,009 $ 1,409,620 $ - $ 236,133 $ 7,183,762 Licenses and permits 321,997 - - - 321,997
Intergovernmental 286,179 - 1,035,350 916,017 2,237,546 Special assessments - - - 183,001 183,001
Charges for services 1,030,202 - - 29,132 1,059,334
Fines and forteitures 51,798 - - - 51,798
Interest (15,796) (24,887) 842 (153,201) (193,042)
Miscellaneous 225,074 - - 5,257 230,331
Total Revenues 7,437,463 1,384,733 1,036,192 1,216,339 11,074,727

EXPENDITURES
Current:

General government 1,892,440 1,550 - 169,034 2,063,024
Public safety 4,526,958 - - 40,683 4,567,641
Public works 101,473 - - 1,127,268 1,228,741
Parks and recreation 424,496 - - - 424,496
Planning 729,174 - - - 729,174
Debt Service: -
Principal 61,701 - - 3,504 65,205
Interest - - - 201 201
Capital outlay - - - 154,301 154,301
Total Expenditures 7,736,242 1,550 - 1,494,991 9,232,783 Excess (Deficiency) of Revenues
Over (Under) Expenditures (298,779) 1,383,183 1,036,192 (278,652) 1,841,944

OTHER FINANCING SOURCES (USES)
Transfers in 2,264,965 - - 527,692 2,792,657
Transfers out (220,286) (1,586,276) (1,035,350) (283,257) (3,125,169) Total Other Financing Sources (Uses) 2,044,679 (1,586,276) (1,035,350) 244,435 (332,512) Net Change in Fund Balances 1,745,900 (203,093) 842 (34,217) 1,509,432

FUND BALANCES
Fund balances, July 1, as previously stated 6,203,600 1,074,428 - 5,410,968 12,688,996 Prior period adjustment - - - (39,597) (39,597)
Fund balances, July 1, as restated 6,203,600 1,074,428 - 5,371,371 12,649,399 Fund balances, June 30 $ 7,949,500 $ 871,335 $ 842 $ 5,337,154 $ 14,158,831 The accompanying notes are an integral part of the financial statements 21 98
City of Cloverdale
Reconciliation of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities For the year ended June 30, 2022
Net Change in Fund Balances - Total Governmental Funds $ 1,509,432 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures, however, in the statement of activities, the costs of these assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense ($1,391,628) is less than capital outlays ($207,003) in the current period. (1,184,625)
Changes in the net pension liability does not require the use of or provide current financial resources and is therefore not reported in the funds. 3,128,442
Changes in the total other post employment benefit obligation does not require the use of or provide current financial resources and is therefore not reported in the funds. 299,352 Changes in deferred inflows and deferred outflows related to pensions and other post employment benefits do not provide or use current financial resources and are therefore not reported in the funds. (3,972,496) Governmental funds report compensated absences when payments are made or are immediately due.

However, in the statement of activities these cost are recorded when incurred. (13,046) Payments on the repayment agreement are reported as an expenditure in the funds but reduce the liability in the statements of net position. 159,733
Net differences (1,582,640)
Change in Net Position of Governmental Activities on Statement of Activities $ (73,208) The accompanying notes are an integral part of the financial statements 22 99
City of Cloverdale
Proprietary Funds
Statement of Net Position
June 30, 2022
Water Wastewater Airport Totals
ASSETS
Current assets:

Cash and cash equivalents $ 3,477,206 $ 3,710,853 $ - $ 7,188,059 Receivables (net) 390,919 249,921 45,135 685,975
Prepayments 12,151 10,893 179 23,223
Inventory - - 52,497 52,497
Total current assets 3,880,276 3,971,667 97,811 7,949,754 Noncurrent assets:

Other assets:

Cash and cash equivalents 976,756 - - 976,756
Total other noncurrent assets 976,756 - - 976,756
Capital assets:

Capital assets not being depreciated:

Land 2,221,441 6,252,835 9,321,137 17,795,413
Construction in progress - - 1,101,173 1,101,173
Total 2,221,441 6,252,835 10,422,310 18,896,586
Capital assets being depreciated:

Buildings 13,613,277 3,144,238 208,126 16,965,641
Improvements - - 2,532,717 2,532,717
Pipelines 12,546,129 11,118,330 - 23,664,459
Appurtenances 2,106,545 2,280,169 - 4,386,714
Vehicles 326,903 455,914 - 782,817
Machinery and equipment 571,639 246,828 - 818,467
Less accumulated depreciation (13,445,121) (9,513,239) (1,202,552) (24,160,912) Net capital assets being depreciated 15,719,372 7,732,240 1,538,291 24,989,903 Net capital assets 17,940,813 13,985,075 11,960,601 43,886,489 Total noncurrent assets 18,917,569 13,985,075 11,960,601 44,863,245 Total Assets 22,797,845 17,956,742 12,058,412 52,812,999

DEFERRED OUTFLOWS OF RESOURCES
Pension plan items 243,956 187,018 2,656 433,630
Other post-employment benefit items 138,073 106,849 1,284 246,206 Total deferred inflows of resources 382,029 293,867 3,940 679,836

LIABILITIES
Current liabilities:

Accounts payable 74,429 223,667 736 298,832
Other current liabilities 12,224 14,919 16,387 43,530
Advances from other funds - - 63,776 63,776
Compensated absences 80,131 74,215 678 155,024
Deposits 272,292 3,062 1,964 277,318
Interest payable 23,080 - - 23,080
Long term obligations due in one year 197,963 12,364 - 210,327 Total current liabilities 660,119 328,227 83,541 1,071,887 Noncurrent liabilities due in more than one year:

Compensated absences 80,131 74,215 678 155,024
Bank loans - - - -
Installment sale agreement (2014) 3,485,000 - - 3,485,000 Safe Drinking Water Loan 359,717 - - 359,717
Total other post-employment benefit liability 728,902 561,024 7,443 1,297,369 Net pension liability 738,834 566,395 8,043 1,313,272
Total non-current liabilities 5,392,584 1,201,634 16,164 6,610,382 Total Liabilities 6,052,703 1,529,861 99,705 7,682,269

DEFERRED INFLOWS OF RESOURCES
Other post-employment benefit plan 208,148 121,264 1,457 330,869 Pension plan 668,805 552,149 7,841 1,228,795
Total deferred inflows of resources 876,953 673,413 9,298 1,559,664

NET POSITION
Net investment in capital assets 17,940,813 13,985,075 11,960,601 43,886,489 Restricted 976,756 - - 976,756
Unrestricted (deficit) (2,667,351) 2,062,260 (7,252) (612,343) Total Net Position $ 16,250,218 $ 16,047,335 $ 11,953,349 $ 44,250,902 The accompanying notes are an integral part of the financial statements 23 100
City of Cloverdale
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2022
Water Wastewater Airport Totals

OPERATING REVENUES
Sales of water $ 3,337,374 $ - $ - $ 3,337,374
Service fees - 2,046,345 - 2,046,345
Sale of fuel and rents - - 144,757 144,757
Miscellaneous 61 16,860 600 17,521
Total Operating Revenues 3,337,435 2,063,205 145,357 5,545,997

OPERATING EXPENSES
Salaries and benefits 1,183,262 960,370 15,784 2,159,416 Purchased power 237,935 300,845 9,213 547,993
Services and supplies 719,826 594,090 119,590 1,433,506 Repairs and maintenance 60,235 248,189 - 308,424
Interfund charges for services 481,185 299,766 30,883 811,834 Depreciation and amortization 641,527 362,709 59,716 1,063,952 Total Operating Expenses 3,323,970 2,765,969 235,186 6,325,125 Operating Income (Loss) 13,465 (702,764) (89,829) (779,128)

NONOPERATING REVENUES (EXPENSES)
Interest and investment revenue (18,158) (78,441) - (96,599) Interest expense (124,132) (7,193) - (131,325)
Total Nonoperating Revenues (Expenses) (142,290) (85,634) - (227,924) Income (Loss) Before Contributions and
Operating Transfers (128,825) (788,398) (89,829) (1,007,052) Contributions and transfers:

Transfers in 175,447 154,583 2,482 332,512
Transfers out - - - -
Capital grants 31,723 171 89,499 121,393
Capital contributions 2,659 - - 2,659
Net contributions and transfers 209,829 154,754 91,981 456,564 Change in Net Position 81,004 (633,644) 2,152 (550,488) NET POSITION:

Total net position, July 1 16,169,214 16,680,979 11,951,197 44,801,390 Total net position, June 30 $ 16,250,218 $ 16,047,335 $ 11,953,349 $ 44,250,902 The accompanying notes are an integral part of the financial statements 24 101
City of Cloverdale
Proprietary Funds
Statement of Cash Flows
For the year ended June 30, 2022
Water Wastewater Airport Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 3,355,434 $ 2,040,683 $ 166,189 $ 5,562,306 $ Interfund charges for services (481,185) (299,766) (30,883) (811,834) Payments to suppliers (1,035,132) (978,556) (128,682) (2,142,370) Payments to employees (1,135,809) (936,943) (12,748) (2,085,500) Net cash provided by (used for) operating activities 703,308 (174,582) (6,124) 522,602

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Advances (to) from other funds - - (85,857) (85,857)
Transfers in / (out) 175,447 154,583 2,482 332,512
Net cash provided by (used for) noncapital 175,447 154,583 (83,375) 246,655 financing activities

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Capital contributions and grants 2,659 - 89,499 92,158
Capital asset purchases - (216,555) - (216,555)
Grant funds received 31,723 171 - 31,894
Payments on long-term debt principal (186,052) (6,277) - (192,329) Interest paid on long-term debt (124,132) (7,193) - (131,325) Net cash provided by (used for) capital and related
financing activities (275,802) (229,854) 89,499 (416,157) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest receipts (18,158) (78,441) - (96,599)
Net Cash provided by investing activities (18,158) (78,441) - (96,599) Net increase (decrease) in cash and cash equivalents 584,795 (328,294) - 256,501 CASH AND CASH EQUIVALENTS:

Balances - beginning of the year 3,869,167 4,039,147 - 7,908,314 Balances - end of the year $ 4,453,962 $ 3,710,853 -$ $ 8,164,815

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:

Operating income (loss) $ 13,465 $ (702,764) $ (89,829) $ (779,128) Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 641,527 362,709 59,716 1,063,952 Changes in current assets and liabilities:

Decrease (increase) in accounts receivable 16,533 (22,522) 63,904 57,915 (Increase) decrease in prepaid expenses (564) (545) (1) (1,110) (Increase) decrease in inventory - - (43,072) (43,072)
Increase (decrease) in OPEB related items 404,558 344,617 6,049 755,224 Increase (decrease) in pension related items (362,207) (323,698) (3,062) (688,967) Increase (decrease) in accounts payable (16,572) 165,113 122 148,663 Increase (decrease) in accrued compensated absences 5,102 2,508 49 7,659 Increase (decrease) in customer deposits 1,466 - - 1,466 $ 703,308 $ (174,582) $ (6,124) $ 522,602
NONCASH CAPITAL FINANCING ACTIVITIES:

During the fiscal year, there were none.

The accompanying notes are an integral part of the financial statements 25 102
City of Cloverdale
Fiduciary Funds
Statement of Fiduciary Net Position
Private Purpose Trust Fund
June 30, 2022
Successor Agency to
Cloverdale
Community
Development Agency
Housing Successor to
Cloverdale
Community
Development
Agency
Totals
ASSETS
Cash and cash equivalents $ 1,842,961 $ 183,804 $ 2,026,765 Cash with trustee 1 - 1
Notes receivable 49,990 250,000 299,990
Repayment agreement - City of Cloverdale 493,611 - 493,611 Total Assets 2,386,563 433,804 2,820,367

LIABILITIES
Accounts payable 1,261 - 1,261
Tax allocation refunding bonds 20,280,000 - 20,280,000
Gain on advance refunding 1,958,329 - 1,958,329
Total Liabilities 22,239,590 - 22,239,590

NET POSITION (DEFICIT)
Held in trust for Taxing Agencies (19,853,027) 433,804 (19,419,223) Total Net Position $ (19,853,027) $ 433,804 $ (19,419,223) The accompanying notes are an integral part of the financial statements 26 103
City of Cloverdale
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
Private Purpose Trust Fund
For the year ended June 30, 2022
Successor Agency to
Cloverdale
Community
Development Agency
Housing Successor to
Cloverdale
Community
Development Agency Totals

ADDITIONS
Distributions for enforceable obligations 1,947,887 $ - $ 1,947,887 $ Interest 2,183 4,301 6,484
Contribution from City - 20% requirement - - -
Total Additions 4,301 1,950,070 1,954,371

DEDUCTIONS
Interest 554,249 - 554,249
City administration costs 205,426 - 205,426
Legal and other costs 133,540 (6,022) 127,518
Total Deductions 893,215 (6,022) 887,193
Increase (decrease) in net position 1,056,855 10,323 1,067,178

NET POSITION (DEFICIT)
June 30, 2021 (20,909,882) 423,481 (20,486,401)
June 30, 2022 $ (19,853,027) $ 433,804 $ (19,419,223)
The accompanying notes are an integral part of the financial statements 27 104

NOTES TO THE FINANCIAL STATEMENTS
28 105

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Cloverdale is a municipal corporation governed by an elected Mayor and four City Council members. The accompanying financial statements present the government, and the financial activities entities for which the government is considered to be financially accountable.

The Community Development Agency of the City of Cloverdale was dissolved effective February 1, 2012. The City elected to serve as the successor custodian of the non-housing and housing related residual assets and obligations of the former redevelopment agency. These activities are accounted for as private purpose trust funds and are reported separately in these financial statements as fiduciary funds. Fiduciary fund assets, liabilities, and financial activity are not reported in the City’s government-wide statement of net position, statement of activities, or fund statements.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e. the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items are not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fiduciary funds are reported separately from City funds.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. 29 106

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims judgments, are recorded only when payment is due.

Property taxes, sales taxes, transient occupancy taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Employees Retirement Fund is used to account for a special voter approved tax to fund employee pension costs. The Capital Projects Bond Proceeds Fund used to account for the unexpected bond proceeds received from the successor to the City’s dissolved Redevelopment Agency.

The City reports the following major proprietary funds:

The water enterprise fund accounts for the operations of the City’s water treatment and distribution system, a wastewater fund accounts for the operation of the City’s wastewater treatment plant and collection facilities, and an airport enterprise fund is used for account for the operations of the City’s municipal airport and runway facilities.

The City applies all applicable Financial Accounting Standards Board (FASB) pronouncements in reporting for its proprietary operations and the provisions of GASB statement Number 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA pronouncements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s water, wastewater, and airport function and other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise and internal service funds are charges to customers for sales and 30 107

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) services. Operating expenses for the enterprise and internal service funds include the costs of sales and services, administration costs and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City reports the following fiduciary fund:

The private purpose trust fund is used to account for the residual assets and liabilities of the City’s former redevelopment agency as the successor agency funds are held in trust by the City.

D. Assets, Liabilities, and Net Assets or Equity

1. Cash and Investments
The City is authorized by its most recent investment policy to invest in the State of California Local Agency Investment Fund, U.S. Treasury bonds, bills, and notes, obligations issued by US Government agencies, banker’s acceptances, repurchase agreements, and time deposits and savings and demand accounts. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

Fair Value Measurements – The City categorizes its fair value measurements within the hierarchy of established generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted market prices in active markets for identical assets. Level 2 inputs are significant other observable inputs, and Level 3 inputs are other significant unobservable inputs. The City holds no separately identifiable investments as its excess cash is held in the State of California Local Agency Investment Fund (LAIF) and Sonoma County Treasurer’s Investment Pool. The LAIF and County Pool value their underlying investments using Level 1 input pricing methods; and the City reflects that in its carrying value of such investments. Investments for the City are reported at fair value. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations.

The reported value of the Pool is the same as the fair value of the pool shares.

2. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, are reported in the fund financial statements, are offset by a fund balance reserve account in the applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are not shown net of an allowance for uncollectable amounts.

Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of market value, be levied only by the County, and be shared by applicable jurisdictions. The County of Sonoma collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations 31 108

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, and Net Assets or Equity (continued)

2. Receivables and Payables (continued)
subject to voter-approved debt. Property taxes are due on November 1 and March 1 and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan.” Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

3. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when used or consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepayments in the governmental funds are accounted for using the consumption method.

4. Leases
City of Cloverdale Lessee: The City is a lessee for contractual obligations for tasers and budgeting software. The City recognizes a lease liability and an intangible right-to-use asset (lease asset) in its financial statements. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

The City uses its estimated state revolving fund loan borrowing rate as the discount rate for leases.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as intangible right-to-use asset and lease liability is reported with longterm liabilities on the statement of net position. 32 109

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, and Net Assets or Equity (continued)

5. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental-type or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($100,000 for infrastructure type assets) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of the business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City are depreciated using the straight-line method over the following estimated useful lives:

Assets Years
Buildings and improvements 25-50
Public domain infrastructure 7-50
Furniture and fixtures 5-12
Vehicles and equipment 2-20

6. Compensated Absences
It is the government’s policy to permit employees to accumulate earned but unused vacation and sick leave benefits. There is a liability for unpaid accumulated vacation and a portion of unpaid sick leave since the City does have a policy to pay employees for unused benefits when they separate from service with the City. In the government-wide financial statements compensated absences are recorded as incurred and related expenses and liabilities are reported by activity. 33 110

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, and Net Assets or Equity (continued)

7. Long Term Obligations
In the government-wide financial statements, and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net assets.

8. Fund Balances – Governmental Funds
Fund balances for governmental funds are reported in classifications based primarily on the extent to which the City is bound to honor constraints about the specific purposes for which amounts in those funds can be spent. These classifications include (1) non-spendable, (2) restricted, (3) committed, (4) assigned and (5) unassigned amounts. Non-spendable amounts generally are items not expected to be converted into cash such as inventories, prepaid items and certain long-term receivables. Restricted amounts include those where constraints placed on the use of resources are externally imposed by grantors, contributors, other governments or by laws and regulations.

Committed amounts are those that can only be used for a specific purpose as determined by the City Council. Such committed amounts may be redeployed for other uses only by the direction of the City Council. Assigned amounts are fund balance amounts constrained by the City’s intent to be used for a specific purpose as determined by the City Manager or Finance Manager. Unassigned amounts are the residual amounts reported in the general fund. When expenditures are incurred for which both restricted and unrestricted (committed, assigned or unassigned) amounts are available, the City considers restricted amounts to have been spent first. When expenditures are incurred for which any class of unrestricted fund balance could be used, the City considers committed amount would be reduced first, followed by assigned, and then unassigned amounts.

9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the State of California Public Employees Retirement System (PERS) and additions to or deductions from the PERS fiduciary net position have been determined on the same basis as they are reported by the PERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

10. Postemployment Benefits Other Than Pension (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information has been provided based upon an actuarial valuation of the Plan. Benefit payments are recognized when due and payable in accordance with the benefit terms.
34 111

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. New GASB Pronouncements
Implemented New GASB Pronouncements
GASB Statement No. 87, Leases. - The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.

This Statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model.

This Statement also will enhance the decision-usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government’s leasing arrangements. The implementation of this Statement did not have a material impact on the financial statements of the City.

GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. - The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period.

The requirements of this Statement will improve financial reporting by providing users of financial statements with more relevant information about capital assets and the cost of borrowing for a reporting period. The resulting information also will enhance the comparability of information about capital assets and the cost of borrowing for a reporting period for both governmental activities and business-type activities. The implementation of this Statement did not have a material impact on the financial statements of the City.

GASB Statement No. 92, Omnibus 2020. - The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions. The topics include but are not limited to leases, intra-entity transfers between a primary government and a post-employment benefit plan component unit, accounting for pensions and OPEB related assets, measurement of liabilities related to asset retirement obligations, and nonrecurring fair value measurements of assets or liabilities. The implementation of this Statement did not have a material impact on the financial statements of the City. 35 112

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. New GASB Pronouncements (continued)
GASB Statement No. 93, Replacement of Interbank Offered Rates. - The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an Interbank Offer Rate (IBOR). This Statement achieves that objective by:
• Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument’s variable payment
• Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate
• Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged transaction is probable • Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap
• Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap.
• Clarifying the definition of reference rate, as it is used in Statement 53, as amended.

The removal of London IBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021 (fiscal year 2022). The City does not believe that the removal of London IBOR as a benchmark will have a material impact on the financial statements.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. - The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans.

The requirements of this Statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15, 2021 (fiscal year 2021-22).

For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this Statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021 (fiscal year 2021- 22).
36 113

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. New GASB Pronouncements (continued)
GASB Statement No. 98, The Annual Comprehensive Financial Report – This statement establishes the term annual comprehensive report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. The implementation of this Statement did not have a material effect on the City’s financial statements.

Upcoming New GASB Pronouncements
GASB Statement No. 91, Conduit Debt Obligations. - The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures.

The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations.

The requirements of this Statement are effective for reporting periods beginning after December 15, 2021 (fiscal 2023). Earlier application is encouraged. The City does not believe this statement will have a significant impact on the City’s financial statements.

All other requirements of this Statement are effective for the current reporting period, which did not have a material impact on the financial statements.

GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. - The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs).

As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction.
37 114

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. New GASB Pronouncements (continued)
The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government’s financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government’s PPPs and evaluate a government’s future obligations and assets resulting from PPP.

PPPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or if applicable to earlier periods, the beginning of the earliest period restated).

The requirements of this Statement are effective for fiscal years beginning after June 15, 2022 (fiscal year 2022-23), and all reporting periods thereafter. The City has not yet determined whether the implementation of this Pronouncement will have a material impact on the financial statements.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements. - This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.

The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs.

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. New GASB Pronouncements (continued)
GASB Statement No. 99, Omnibus 2022 - The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and (2) application of certain GASB Statements and accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are as follows:
• Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument • Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives • Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and public- public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset
• Clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based information technology arrangement (SBITA) term, classification of a SBITA as a short-term SBITA, and recognition and measurement of a subscription liability
• Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt • Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP)
• Disclosures related to nonmonetary transactions
• Pledges of future revenues when resources are not received by the pledging government • Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements • Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. • Terminology used in Statement 53 to refer to resource flows statements.

The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 were effective for the current fiscal year and did not have a material impact on the District’s financial statements.

The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022 (fiscal 2022-23), and all reporting periods thereafter. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023 (fiscal 2023-24), and all reporting periods thereafter.
39 116

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. New GASB Pronouncements (continued)
GASB Statement No. 100, Accounting Changes and Error Corrections–An Amendment of GASB Statement No. 62 - The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. This Statement also addresses corrections of errors in previously issued financial statements.

This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated.

The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023 (fiscal 2023-24), and all reporting periods thereafter.

Implementation of this Statement may have a material effect on the financial statements of the City.

GASB Statement No. 101, Compensated Absences - This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.

The requirements of this Statement are effective for fiscal years beginning after December 15, 2023 (fiscal 2025), and all reporting periods thereafter. Earlier application is encouraged. The City does not anticipate that the Statement will have a material effect on the financial statements. 40 117

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL

STATEMENTS
A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds, and net position – governmental activities as reported in the government-wide statements of net position. The details of this $40,626,633 difference are as follows:

Capital assets $ 81,717,360
Less: Accumulated depreciation (31,106,405)
Capital Assets, net of accumulated depreciation 50,610,955 Addition of long-term lease liability (79,240)
Addition of pension and OPEB related balances (9,098,162) Other noncurrent liabilities (806,920)
$ 40,626,633
B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this difference and other significant components of the difference are as follows:

Capital outlay $ 207,003
Depreciation expense (1,391,628)
Change in net pension liability and total OPEB liability (544,702) Other items 146,687
Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net position of governmental activities $ (1,582,640)
Note 3: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. Appropriations lapse at fiscal year end. The appropriated budget is prepared by fund, function, and department. The City Manager may make transfers of appropriations within a department.

Transfers between departments and other changes require City Council approval. The legal level of control is the department and fund level. The Council made no supplemental appropriations during the fiscal year.

Encumbrance accounting is employed in governmental funds. Encumbrances outstanding at year end lapse and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. The non-major funds Gas Tax ($30,743), Vista Views ($112,259), and Asset Forfeiture ($17,327) had fund deficits. The deficits will be funded by future fund transfers or revenues.
41 118

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 4: CASH AND INVESTMENTS
The City’s total cash and investments, at fair value, are presented on the accompanying financial statements in the following allocation:

Government-Wide Statement of Net Position
Governmental Activities
Cash and cash equivalents $ 20,957,469
Restricted cash and cash equivalents 976,756
Statements of Fiduciary Net Position
Private Purpose Trust Fund
Cash and cash equivalents 2,026,765
Cash with trustee 1
Total $ 23,960,991
Cash and investments as of June 30, 2022 consist of the following:

Cash on hand 1,700
Deposits with financial institutions 11,689,856
Investments 12,269,435
Total $ 23,960,991
Custodial Credit Risk – Bank Deposits. Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City’s policy for deposits is that they will be made only in institutions in California, they shall be insured or collateralized with United States backed securities, and time certificates of deposit shall have a maturity of less than three years. At June 30, 2022, $17,833,842 of the City’s bank balances of $18,083,842 was not insured over the FDIC limit of $250,000.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

The fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure the City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.

Investment Policy
Authorized Financial Dealers and Institutions
The Finance Manager maintains a list of financial institutions and primary dealers authorized to provide investment services. “Primary” dealers include those that regularly report to the Federal Reserve Bank and should qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule).

Authorized Investments and Limitations of Investments
Investment of City funds is governed by the California Government Code Sections 53600 et seq.

Within the context of the limitations, the following investments are authorized, as further limited herein:
42 119

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 4: CASH AND INVESTMENTS (continued)
• United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest, there is not percentage limitation of the portfolio that can be invested in this category. • Federal Agency or United States, government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. • Local Agency Investment Fund (LAIF) which is a State of California managed investment pool may be used up to the maximum permitted by LAIF.
• Insured savings accounts are permitted without limitations. • Investments detailed in items 5 through 10 are further restricted to 5% of the purchase value of all investments and cash accounts (the portfolio), in any one issuer name. The total value invested in any one issuer shall also not exceed 5% of the issuer’s net worth. • Bills of exchange or time drafts drawn on and accepted by commercial banks, otherwise known as banker’s acceptances are permitted. Banker’s acceptances purchased may not exceed 180 days to maturity or 40% of the cost value of the portfolio. • Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided by Moody's Investor Services, Inc., Standard & Poor's, or Fitch Financial Services, inc. Commercial paper shall be issued by domestic corporations having assets in excess of $500,000,000 and having a "AA" or better rating on its long-term debentures as provided by Moody's, Standard & Poor's, or Fitch. Purchases of eligible commercial paper may not exceed 270 days to maturity nor represent more than 10% of the outstanding paper of the issuing corporation. Purchases of commercial paper may not exceed 25% of the City's portfolio.
• Negotiable certificates of deposit issued by nationally or state chartered banks or state or federal savings institutions. Purchases of negotiable certificates of deposit may not exceed 30% of total portfolio.
• Time deposits, non-negotiable and collateralized in accordance with the California Government Code, may be purchased through banks or savings and loan associations. Since time deposits are not liquid, no more than 25% of the investment portfolio may be invested in this investment type.
• Medium Term Corporate Notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Securities eligible for investment shall be rated "A" or better by Moody's or Standard & Poor's rating services.

Purchase of medium term notes may not exceed 30% of the purchase value of the portfolio and no more than 5% of the purchase value of the portfolio may be invested in notes issued by one corporation.
43 120

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 4: CASH AND INVESTMENTS (continued)
• Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940. To be eligible for investment pursuant to this subdivision these companies shall either: (1) attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) have an investment advisor registered with the Securities and Exchange Commission with not less than five years experience investing in securities and obligations authorized by Government Code section 53601 and with assets under management in excess of $500,000,000. The purchase price of shares shall not exceed 15% of the investment portfolio. • California Asset Management Program
Ineligible Investments
The City shall not invest any funds in inverse floaters, range notes, or interest-only strips that are derived from a pool or mortgages, or in any security that could result in zero interest accrual if held to maturity, or any other investment not listed in this policy.

Investments – At June 30, 2022 the City had the following investments. *All ratings are from Moody’s except for these two municipal bonds, which were rated by S&P.

The investments are valued using Level 1 inputs. The City also holds $2,026,765 in fiduciary funds for the successor agency consisting of $1,198,797 in cash, $827,967 in the LAIF and $1 with the bond trustee.

Type Investment Average Maturity Fair Value Rating
State Investment Pool (LAIF) <1 year $ 5,774,118 N/A
Sonoma County Treasurers Pool 1.78 years 381,503 N/A
Corporate Bond 1.80 years 297,995 AA+
Corporate Bond 3.62 years 249,439 A
Corporate Bond 3.39 years 336,841 ACorporate Bond 2.82 years 244,912 BBB+ Vanguard <1 year 3,802,897 N/A
Federated <1 year 40,869 N/A
Fidelity <1 year 192,188 N/A
Municipal Bond 2.63 years 75,349 AA+
Municipal Bond 2.55 years 263,678 AA
Municipal Bond 1.05 years 175,634 AAMunicipal Bond 1.64 years 90,713 A+ Municipal Bond 4.34 years 91,878 AMunicipal Bond 1.17 years 30,108 Aa1* Municipal Bond 1.59 years 130,426 Aa2*
Municipal Bond 2.09 years 9,979 Aaa*
Municipal Bond 3.09 years 54,244 Aa3*
Municipal Bond 3.76 years 26,664 A2*
$ 12,269,435
44 121

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 4: CASH AND INVESTMENTS (continued)
Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits the City’s investment portfolio to securities having a maturity date of five years or less at the date of purchase.

Credit Risk – The City’s policy is to mitigate this risk by investing in investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the investment portfolio. The City’s investment in money market funds was rated AAA by Moody’s Investor Service, AAA by the Standard and Poor, and AAA by Fitch. The State Investment Pool and the Sonoma County Investment Pool are unrated.

Custodial Credit Risk – For an investment, custodial credit risk is the risk that, in the event of the failure of a counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All of the City’s investments were held in investments not evidenced by specific securities and not collateralized by other investments or deposits.

Note 5: RECEIVABLES
Receivables as of year-end for the government’s individual major and non-major funds in the aggregate, net of the applicable allowances for uncollectible accounts, are as follows:

Employee Other Total
General Retirement Funds Governmental
Accounts receivable $ 230,499 $ - $ 28,046 $ 258,545
Taxes 622,918 68,612 - 691,530
Assessments - - 1,959 1,959
Loans - - 250,000 250,000
Governments - - 111,638 114,313
Totals $ 853,417 $ 68,612 $ 391,643 $ 1,313,672
Total
Water Wastewater Airport Business-Type
Accounts receivable $ 390,919 $ 249,921 $ 45,135 $ 685,975 Taxes - - - -
Assessments - - - -
Interest - - - -
Governments - - - -
Totals $ 390,919 $ 249,921 $ 45,135 $ 685,975
45 122

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 6: INTERFUND TRANSFERS, RECEIVABLES AND PAYABLES
The composition of interfund transfers of June 30, 2022 is as follows:

Transfers in
General fund
Employee
Retirement
American
Rescue Plan
Proprietary
Funds Non-Major
Total
Transfers Out
General fund $ - $ - $ - $ - $ 220,286 $ 220,286
Employee retirement fund 1,195,284 - - 332,512 58,480 1,586,276 American Rescue Plan Act fund 1,035,350 - - - - 1,035,350 Non-major governmental funds 34,331 - - - 248,926 283,257 Proprietary funds - - - - - -
Total transfers in $ 2,264,965 $ - $ - $ 332,512 $ 527,692 $ 3,125,169 The primary purpose of the transfers out during fiscal 2022 were to transfer out $1,586,276 in special retirement taxes approved by voters to the general fund and other funds providing employee retirement benefits and $1,035,350 of Coronavirus Local Fiscal Recovery funds to the general fund for future use in accordance with guidance set forth by the Department of the Treasury. These types of transfers are normal recurring funding transfers between City funds.

Note 7: CAPITAL ASSETS
Capital asset activity relating to governmental activities for the year ended June 30, 2022 was as follows:

Beginning
Balance Additions Deletions Reclasses
Ending
Balance
Governmental activities:

Capital assets, nondepreciable
Land $26,867,609 $ - $ - $ - $ 26,867,609
Construction in progress 2,111,100 159,885 - (2,082,708) 188,277 Total capital assets not being depreciated 28,978,709 159,885 - (2,082,708) 27,055,886 Capital assets, depreciable:

Buildings 2,337,834 - - - 2,337,834
Storm drains and culverts 10,418,140 - - - 10,418,140
Streets and sidewalks 31,854,851 - - 2,082,708 33,937,559 Parks and lighting systems 5,888,505 - - - 5,888,505
Equipment and vehicles 2,052,037 47,118 (98,959) - 2,000,196 Right-to-use lease asset - 79,240 - - 79,240
Total depreciable capital assets 52,551,367 126,358 (98,959) 2,082,708 54,661,474 Less accumulated depreciation for:

Buildings (1,471,557) (45,313) - (969) (1,517,839)
Storm drains and culverts (5,600,235) (198,618) - 16,776 (5,782,077) Streets and sidewalks (16,746,125) (800,478) - 84,817 (17,461,786) Parks and lighting systems (4,384,042) (205,376) - 12,114 (4,577,304) Equipment and vehicles (1,611,777) (141,843) 98,959 (112,738) (1,767,399) Right-to-use lease asset - - - - -
Total accumulated depreciation (29,813,736) (1,391,628) 98,959 - (31,106,405) Net depreciable capital assets 22,737,631 (1,265,270) - 2,082,708 23,555,069 Net capital assets, governmental activities $ 51,716,340 $(1,105,385) $ - $ - $ 50,610,955 46 123

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 7: CAPITAL ASSETS (continued)
Capital asset activity relating to business-type activities for the year ended June 30, 2022 was as follows:

Beginning
Balance Additions Deletions Reclasses
Ending
Balance
Business-type activities:

Capital assets, nondepreciable
Land $17,795,413 $ - $ - $ - $ 17,795,413
Construction in progress 1,101,173 - - - 1,101,173
Total capital assets not being depreciated 18,896,586 - - - 18,896,586 Capital assets, depreciable:

Buildings 16,965,641 - - - 16,965,641
Improvements 2,532,717 - - - 2,532,717
Pipelines 23,491,469 172,990 - - 23,664,459
Appurtenances 4,343,149 43,566 - - 4,386,715
Vehicles and equipment 1,725,903 - (124,620) - 1,601,283 Total depreciable capital assets 49,058,879 216,556 (124,620) - 49,150,815 Less accumulated depreciation for:

Buildings (6,911,717) (337,582) - 6,154 (7,243,145)
Improvements (956,416) (56,712) - 6,690 (1,006,438)
Pipelines (11,984,039) (454,719) - 11,054 (12,427,704)
Appurtenances (2,269,267) (83,946) - (1,065) (2,354,278) Vehicles and equipment (1,100,141) (130,993) 124,620 (22,833) (1,129,347) Total accumulated depreciation (23,221,580) (1,063,952) 124,620 - (24,160,912) Net depreciable capital assets 25,837,299 (847,396) - - 24,989,903 Net capital assets, business-type activities $ 44,733,885 $ (847,396) $ - $ - $ 43,886,489 Depreciation and amortization expense was charged to functions/programs of the City as follows:

Governmental activities:

General government $ 20,193
Parks 249,953
Safety 94,701
Infrastructure-Streets 1,026,781
Total depreciation expense-governmental activities $ 1,391,628 Business-type activities:

Water $ 641,527
Wastewater 362,709
Airport 59,716
Total depreciation/amortization-business activities $ 1,063,952 47 124

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 8: LONG-TERM DEBT FROM DIRECT BORROWINGS
A. Safe Water Drinking Loan
The City entered into an agreement with the Department of Water resources for a $2,520,000 loan for the purpose of financing water system improvements. The loan bears interest at 2.955 percent, is repayable in semiannual payments each April 1 and October 1, and matures April 2026. The City is obligated to set system revenue rates sufficient to cover system expenses plus debt service payments on the loan. In addition, the City is required to maintain a reserve fund equal to two semiannual payments or $126,088. At June 30, 2022, there was $167,960 on deposit in the reserve fund held by the fiscal agent.

Future debt service on the total loan amount is:

Fiscal Year Ending June 30 Principal Interest Total
2023 $ 112,954 $ 13,134 $ 126,088
2024 116,299 9,789 126,088
2025 119,793 6,295 126,088
2026 123,347 2,742 126,089
Total $ 472,393 $ 31,961 $ 504,353
B. Vehicle Bank Loans
The City entered into four loans with Exchange Bank for the purpose of financing the purchase of vehicles for the public safety, street, water and wastewater departments. The loans are for five year terms, are repayable in monthly installments of principal and interest, and are secured by a security interest in the vehicles. Upon default by nonpayment, the lender may accelerate each loan and require immediate repayment of each entire loan. The lender may also take possession of vehicles subject to the security interest and sell or dispose of the vehicles. Future debt service on these loans is as follows:

Business-Type Activities Governmental Activities
Fiscal Year Ending June 30 Principal Interest Principal Interest 2023 $ 26,953 $ 512 $ 3,310 $ 60
Totals $ 26,953 $ 512 $ 3,310 $ 60
This space intentionally left blank
48 125

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 8: LONG-TERM DEBT FROM DIRECT BORROWINGS (continued) C. 2014 Water Installment Sale Agreement
The City has entered into an installment sale agreement with the Public Property Financing Corporation of California for the purpose of obtaining funds to finance the construction of improvements to the City’s municipal water system. Under the arrangement, the Corporation is to sell $4,000,000 in Series 2014A Certificates of Participation which Certificates are to be purchased and funded by the Rural Utilities Service, United States Department of Agriculture (USDA). The City’s obligation to make payments under the installment agreement is a special obligation limited solely to the net revenues, as defined, of the City’s water enterprise. The agreement bears interest at 2.75 percent, and installment payments are due each May 1 and November 1 commencing May 1, 2015 and continuing through May 1, 2054. The first principal payment is to be made November 1, 2015.

The agreement is an as drawn down/reimbursement basis loan arrangement wherein the interest to be paid is to be determined based upon the dates that the proceeds are advanced to the City.

As of June 30, 2016, the City had incurred $4,000,000 in project costs eligible for funding under this borrowing arrangement. Accordingly, the City in its water enterprise has drawn down $4,000,000 in loan proceeds and an installment agreement payable in the same amount. Future debt service under the arrangement is as follows:

Fiscal Year Ending June 30 Principal Interest Total
2023 $ 70,000 $ 97,762 $ 167,762
2024 72,000 95,838 167,838
2025 75,000 93,858 168,858
2026 77,000 91,796 168,796
2027 79,000 89,678 168,678
2028-2032 430,000 414,620 844,620
2033-2037 493,000 352,046 845,046
2038-2042 560,000 280,638 840,638
2043-2047 641,000 199,378 840,378
2048-2052 734,000 106,180 840,180
2053-2054 324,000 13,420 337,420
Total $ 3,555,000 $ 1,835,214 $ 5,390,214
D. Repayment Agreement
Under the redevelopment agency dissolution process, the State Controller’s Office made a determination that an unallowable transfer had been made between the City and the former redevelopment agency during the dissolution and ordered the City to repayment the transfer to the Successor Agency. The City and the Successor Agency entered into an agreement to return the transfer in the amount of $925,520 over a period of 15 years in annual installments of $61,701 without interest. 49 126

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 8: LONG-TERM DEBT FROM DIRECT BORROWINGS (continued) D. Repayment Agreement (continued)
Future repayment is as follows:

Fiscal Year Ending June 30 Principal Interest Total
2023 $ 61,701 $ - $ 61,701
2024 61,701 - 61,701
2025 61,701 - 61,701
2026 61,701 - 61,701
2027 61,701 - 61,701
2028-2030 185,106 - 185,106
Total $ 493,611 $ - $ 493,611
Long-term debt activity for 2022 fiscal year was as follows:

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental
Activities:

Direct Borrowings:

Repayment Agreement $ 555,312 $ - $ 61,701 $ 493,611 $ 61,701 Bank Loans 7,483 - 3,875 3,608 3,608
Insurance assessments 127,686 - 94,157 33,529 33,529
Compensated absences 526,252 391,803 365,711 552,344 276,172 Total $ 1,216,733 $ 391,803 $ 525,444 $ 1,083,092 $ 375,010 Business-type
Activities:

Direct borrowings:

State Water Loan $ 582,084 $ - $ 109,689 $ 472,393 $ 112,954 Bank loans 41,288 - 13,637 27,651 27,373
2014 Water agreement 3,624,000 - 69,000 3,555,000 70,000 Compensated absences 302,388 213,137 205,477 310,048 155,024 Total $ 5,549,760 $ 213,137 $ 397,803 $ 4,365,092 $ 365,351 Note 9: RISK MANAGEMENT
The City of Cloverdale is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Member entity obtains insurance coverage.
50 127

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 9: RISK MANAGEMENT (continued)
The City of Cloverdale is a Member of the California Intergovernmental Risk Authority (CIRA), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers’ compensation, and property claims. Under the General Liability program, the City has a $5,000 retention limit similar to a deductible, with the Authority being responsible for losses above that amount up to $1 million. The Authority has additional coverage of $39 million in excess of its $1 million retention limit through affiliated risk management authorities. The Authority also provides $600 million aggregate property coverage to its members with such coverage provided by purchased insurance.

Liabilities of the member entity are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards.

Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors.

The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example, from salvage or subrogation, are another component of the claims liability estimate.

The Authority covers workers’ compensation claims up to its self-insurance limit of $500,000. Safety National and Gray Insurance Company provide excess coverage to statutory limits. Financial Statements of CIRA may be obtained from its administrative office located at 2330 E. Bidwell Street, Suite 150, Folsom, CA 95630; www.cira-jpa.org or by calling (916) 927-7727.

Note 10: CONTINGENCIES AND COMMITMENT
Litigation. The City is involved in litigation incurred in the normal course of conducting City business.

Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Grants and allocations. Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

Note 11: RESTRICTED NET POSITION AND NON-SPENDABLE FUND BALANCES The $6,204,869 restricted amount in the governmental activities and the $976,756 in the business-type activities statement of net position represent amounts to be used only for specific purposes which restrictions are imposed by laws, formal agreements, or other governments. Nonspendable fund balance in the general fund consisted of loans and deposits.
51 128

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 12: OTHER POST-EMPLOYMENT BENEFITS
A. Plan Description
The City’s defined benefit OPEB Plan provides OPEB for all eligible full-time general and public safety employees of the City. The City’s plan is a single-employer defined benefit OPEB Plan administered by the City. The City Council through resolutions and regulations has the authority to establish and amend the benefit terms. A separate OPEB trust fund has not been established by the City. No assets are accumulated in a trust that meets the criteria in paragraph 4 or GASB Statement Number 75.

B. Benefits Provided
The City’s OPEB plan provides healthcare benefits to eligible retirees and their dependents. Benefits are provided through third party insurers, and the full cost of the benefits is provided by the Plan.

C. Employees Covered by the Benefit Terms
At June 30, 2022, the following employees were covered by the benefit terms:

Inactive employees or beneficiaries currently receiving benefits 12 Inactive employees entitled to but not yet receiving benefit payments - Active employees 18
30 The City’s OPEB Plan is closed to new entrants.

D. Contributions
The City’s plan is affiliated with the Redwood Empire Municipal Insurance Fund (REMIF) in so far as the City’s health insurance premium payments are paid to the REMIF. The REMIF through an aggregation of single employer plans pools administrative functions in regard to purchases of commercial health insurance policies and coverages. City regulations grant authority to the City Council to establish and amend contribution requirements. Employees are not required to contribute to the plan. The amount contributed for fiscal 2022 was $58,406 which amount was the amount of City paid benefit payments.

E. Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020.

F. Actuarial Assumptions
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement unless otherwise specified:
52 129

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 12: OTHER POST-EMPLOYMENT BENEFITS (continued)
F. Actuarial Assumptions (continued)
Actuarial valuation date June 30, 2020
Contribution policy No pre-funding
Discount rate 3.54 percent at June 30, 2022 (Bond buyer 20-Bond Index)

2.16 percent at June 30, 2021 (Bond buyer 20-Bond Index) General inflation 2.50% annually
Mortality, Retirement,
Disability, Termination
CalPERS 1997 – 2015 Experience Study
Mortality Improvement Mortality projected fully generation with Scale MP-2021 Salary Increases Aggregate – 2.75% annually
Merit – CalPERS 1997 – 2015 Experience Study
Medical Trend Non-Medicare – 6.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076
Medicare – 5.85% for 2022, decreasing to an ultimate rate of

3.75% in 2076
Dental & Vision Trend 2.75% annually
Healthcare Participation
at Retirement
Actives: 100%
Retirees: 100% if currently covered.

Change in assumptions Discount rate was updated on Municipal Bond rate as of the measurement date.

G. Changes in the Total OPEB Liability
Total OPEB
Liability
Balances at 6/30/2021 $ 3,187,065
Changes for the year:

Service cost 109,677
Interest 70,579
Actual vs. expected experience -
Assumption changes (615,351)
Benefit payments (58,406)
Net changes (493,501)
Balances at 6/30/2022 $ 2,693,564
53 130

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 12: OTHER POST-EMPLOYMENT BENEFITS (continued)
H. Sensitivity of the Total OPEB Liability to changes in the discount rate and health-care cost trend rates Sensitivity of the total OPEB liability to changes in the discount rate:

The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.54percent) or 1-percentage point higher (4.54 percent) than the current discount rate. 1% Decrease Discount Rate 1% Increase
Total OPEB Liability $ 3,120,504 $ 2,693,564 $ 2,347,826 Sensitivity of the Total OPEB Liability to changes in healthcare cost trend rates 1% Decrease Current Trend 1% Increase
Total OPEB Liability $ 2,267,460 $ 2,693,564 $ 3,233,135 I. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022 the City recognized actuarial OPEB expense of $40,914. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ - $ (281,621)
Changes of assumptions 380,455 (645,820)
Employer contributions subsequent
to measurement date - -
Totals $ 380,455 $ (927,441)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal year ended June 30 Amounts
2023 (126,026)
2024 (122,613)
2025 (168,131)
2026 (126,545)
2027 (3,671)
Thereafter -
J. Payable to the OPEB Plan
At June 30, 2022, there was no payable to the OPEB Plan. 54 131

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 13: PUBLIC EMPLOYEE PENSION PLANS
A. Plan Description
The plans are a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees Retirement System (CalPERS). The CalPERS is governed by a 13 member Board of Administration with six elected members, three appointed members and four ex officio members which include the State Treasurer, the State Controller, the Director of California Department of Human Services and a designee of the State Personnel Board.

B. Benefits Provided
The CalPERS provides retirement, disability, and death benefits. Retirement benefits are defined as

2.5 percent of the employees final 12 months average compensation times the employee’s years of service (2.0 percent for safety employees). Employees with 10 years of continuous are eligible to retire at age 55 (age 50 for safety employees). Employees are eligible for service-related disability benefits regardless of the length of service. Five years of service is required for non-service-related disability eligibility. Disability benefits are determined in the same manner as retirement benefits but are payable immediately without an actuarial reduction. Pre-retirement death benefits equal an employee’s final full-year salary. Both plans provide for a 2 percent Cost of Living Adjustment (COLA). The public safety plan is closed to new entrants.

C. Contributions
Section 20814 of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employees be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ending June 30, 2021, the active employee contribution rates for the PERFC Plan ranged from 6.75 percent to 9 percent of annual pay, and the employer contribution rates ranges from 7.59 to 23.71 percent of annual payroll.

D. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2022 the City reported a liability of $6,773,066 for its proportionate share of the net pension liability for all plans. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating governments, actuarially determined. At June 30, 2022 the City’s proportion was

0.12523 percent of the PERF C Plan compared to 0.100069 at June 30, 2021. For the fiscal year ending June 30, 2022, the City recognized actuarial pension expense of $2,115,172. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
55 132

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 13: PUBLIC EMPLOYEE PENSION PLANS (continued)
D. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued)
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual
experience $ 984,514 $ -
Changes in assumptions - -
Net difference between projected and actual
earnings on pension plan investments - (4,848,124)
Changes in employer’s proportion 67,264 (48,772)
Differences between the employer’s contributions
and proportionate share of contributions - (216,619)
City contributions subsequent to measurement date 1,486,721 - Total $ 2,538,499 $ (5,113,515)
The net $4,061,737 reported as deferred inflows of resources related to pensions from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2023 City financial statements as part of the June 30, 2022 plan measurement date. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Deferred Outflows
Fiscal Year Ended June 30 (Inflows) of Resources
2023 $ (777,196)
2024 (879,295)
2025 (1,068,126)
2026 (1,337,120)
2026 -
Thereafter -
This space is intentionally left blank.
56 133

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 13: PUBLIC EMPLOYEE PENSION PLANS (continued)
E. Actuarial Methods and Assumptions
The pension liability for the year ending June 30, 2022 was determined using the following actuarial assumptions:

Miscellaneous Plan
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary increases Varies by Entry Age and Service
Mortality Derived using CalPERS’ Membership Data for all Funds.

The mortality table used was developed based on
CalPERS-specific data. The table includes 15 years of
mortality improvements using Society of Actuaries Scale 90% of Scale MP 2016. For more details on this table,
please refer to the December 2017 experience study
report (based on CalPERS demographic data from 1997
to 2015) that can be found on the CalPERS website.

Post-retirement benefit
increase
Contract COLA up to 2.50% until Purchasing Power
Protection Allowance Floor on Purchasing Power applies
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:

New Strategic Real Return Real Return
Asset Class Allocation Years 1-10 Years 11+
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00 1.00 2.62
Inflation Assets - 0.77 1.81
Private Equity 8.0 6.30 7.23
Real Assets 13.00 3.75 4.93
Liquidity 1.00 - (0.92)
57 134

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 13: PUBLIC EMPLOYEE PENSION PLANS (continued)
F. Discount Rate
The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

G. Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.15 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.15 percent) or 1-percentage higher (8.15 percent) than the current rate:
1% Current 1%
City’s proportionate share Decrease Discount Rate Increase of the net pension liability (6.15%) (7.15%) (8.15%)
City $ 12,155,865 $ 6,773,066 $ 2,337,677
H. Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.

This space is intentionally left blank.
58 135

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 14: SUCCESSOR TO THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF

CLOVERDALE
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. As a result, all redevelopment agencies are dissolved effective February 1, 2012.

The Agency’s assets were transferred to a Successor Agency. The Successor Agency is to be the City or County that originally created the former agency unless an election is made to not be the Successor Agency. The Successor Agency is to take control of all redevelopment assets, properties, contracts, leases, records, buildings and equipment and dispose of all assets and properties of the former redevelopment agency. The City has elected to be the Successor Agency for both housing and nonhousing purposes.

The Successor Agency is to establish a Redevelopment Obligation Retirement Fund, review the Agency’s enforceable obligation payment schedule (which schedule includes agency obligations and for that matter excludes certain defined obligations), modify the schedule and readopt it if necessary.

The Successor Agency may only make payments for those obligations in a Recognized Obligation Payment Schedule (ROPS) as approved by regulatory bodies. The respective County AuditorController, is required, among other matters, to (1) establish a redevelopment obligation retirement fund, (2) establish a property tax trust fund, (3) and periodically distribute property taxes to the Successor Agency in an amount equal to the cost of obligations specified in the ROPS and (4) perform other functions.

After the date of dissolution, the assets and financial activities of the dissolved redevelopment agency are reported in a fiduciary fund (the private purpose trust fund) in the financial statements of the City of Cloverdale. The assets and liabilities of the private purpose trust are excluded from the governmentwide statement of net position of the City of Cloverdale and from the Statement of Activities of the City of Cloverdale because fiduciary assets are not available in any fashion for use by the City.

A. Enforceable Obligations of the Successor Agency
On September 15, 2020, The City of Cloverdale Successor Agency issued $18,625,000 in Cloverdale Community Development Successor Agency 2020 Tax Allocation Refunding Bonds, Series A and $2,450,000 in its 2020 Taxable Tax Allocation Refunding Bonds, Series B both for the purpose refunding the former redevelopment agency’s 2015 Tax Allocation Refunding Bonds. The refunding transaction was approved by California State Department of Finance. The refunding resulted in book gain on refunding of $2,073,526 to be amortized to interest revenue over the life of the new bonds.

The Series A refunding bonds mature in August of 2038, and the Series B bonds mature in August 1, 2023. Series A 2020 tax allocation refunding bonds are subject to mandatory sinking fund redemptions. The Series A bonds bear interest between 2 and 4 percent and the Series B bonds bear interest between 0.85 and 0.95 percent. The bonds are secured by a pledge of tax revenues deposited into the Redevelopment Property Tax Trust Fund and the Redevelopment Obligation Retirement Fund.

The Successor Agency is obligated to the place 100 percent of the debt service requirements of the refunding bonds on its Recognized Obligation Payments Schedules (ROPS) used to the request funding for such purposes.
59 136

CITY OF CLOVERDALE, CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
Note 14: SUCCESSOR TO THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF CLOVERDALE (continued)
A. Enforceable Obligations of the Successor Agency (continued) Future debt service on the 2020 refunding bonds Series A and B bonds is:

Fiscal Year Principal Interest Total
2023 $ 920,000 $ 672,123 $ 1,592,123
2024 925,000 661,641 1,586,641
2025 935,000 636,600 1,571,600
2026 975,000 598,400 1,573,400
2027 1,015,000 568,750 1,583,750
2028 – 2032 5,605,000 2,250,100 7,855,100
2033 – 2038 9,905,000 1,073,600 10,978,600
Total $ 20,280,000 $ 6,461,214 $ 26,741,214
B. Cash and Investments Held in Trust and Advance Payable to City The cash and investments of the successor agency and housing successor at June 30, 2022 consisted of $1 being held by a bond trustee bank and operating cash of $2,026,765.

C. Successor Repayment Agreement Receivable
In October of 2014, the California State Controller issued a report relating to the review of asset transfers made by the City in connection with the dissolution of the former redevelopment agency and its successor.

The report took exception to certain transactions and contained a finding that there were $925,520 in unallowable transfers that must be turned over by the City to the Successor Agency. The Oversight Board of October 15, 2015 approved the repayment agreement. The agreement provides that the City shall repay the Successor Agency the $925,520 over a 15 year repayment term that matures on January 31, 2031. The balance at June 30, 2022 was $493,611.

Note 15. PRIOR PERIOD ADJUSTMENT
The SB2 Grant fund was omitted from the non-major governmental fund schedule in the 2021 financial statements. As such, the fund balance roll forward was off by the balance of this fund (deficit of $39,597). 60 137
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61 138

REQUIRED SUPPLEMENTARY INFORMATION
62 139
City of Cloverdale
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the year ended June 30, 2022
Variance from
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund Balance, July 1 $ 6,203,600 $ 6,203,600 $ 6,203,600 $ - Resources (inflows):

General taxes:

Property 2,982,413 2,982,413 2,841,179 (141,234)
Sales 1,123,800 1,123,800 1,243,563 119,763
Excise tax (Measure P) 480,000 480,000 268,308 (211,692) Utility users tax (Measure O) 448,500 448,500 494,641 46,141 Franchise and transient occupancy tax 455,000 455,000 690,318 235,318 License permits 172,150 172,150 321,997 149,847
Intergovernmental 372,952 372,952 286,179 (86,773)
Charges for services 1,175,731 1,175,731 1,030,202 (145,529) Fines and forfeitures 16,000 16,000 51,798 35,798
Interest 10,000 10,000 (15,796) (25,796)
Miscellaneous 413,780 413,780 225,074 (188,706)
Transfers in 1,352,502 2,387,852 2,470,391 82,539
Amounts available for charges to appropriations 15,206,428 16,241,778 16,111,454 (130,324) Charges to appropriations
General government:

City Council 158,029 176,389 100,174 76,215
City manager 499,912 517,310 404,202 113,108
Clerk 271,309 272,622 202,643 69,979
Community support 170,950 290,950 249,254 41,696
Human resources 247,240 247,443 181,928 65,515
Risk management 480,874 480,874 374,288 106,586
Debt service - successor - - 61,701 (61,701)
Finance 434,583 435,293 345,038 90,255
General services 322,025 322,025 240,341 81,684
Public safety:

Police administration 1,269,140 1,322,184 1,318,848 3,336 Police operations 2,074,624 2,096,943 1,888,185 208,758 Police communication records 1,163,819 1,188,510 1,140,110 48,400 Police auxilary services 195,717 196,731 179,815 16,916 Public works:

Facilities maintenance 99,836 99,887 101,473 (1,586)
Parks and recreation:

Park maintenance and improvements 516,914 516,554 419,295 97,259 Cemetery 4,000 6,500 5,200 1,300
Planning:

Planning commission 5,615 6,215 4,499 1,716
Current planning 652,098 702,310 265,037 437,273
Engineering and building services 252,412 252,716 112,042 140,674 Plan checking and inspection 322,887 323,141 347,595 (24,454) Transfers out 359,735 359,735 220,286 139,449
Total charges to appropriations 9,501,719 9,814,332 8,161,954 1,652,378 Fund Balance, June 30 $ 5,704,709 $ 6,427,446 $ 7,949,500 $ 1,522,054 63 140
City of Cloverdale
Required Supplementary Information
Budgetary Comparision Schedule - General Fund
For the year ended June 30, 2022
Note A Explanation of Differences between Budgetary Inflows and Outflows and GAAP $ 16,111,454
(6,203,600)
(2,470,391)
$ 7,437,463
$ 8,161,954
(220,286)
$ 7,941,668
Note to RSI - Note A
Revenues and Expenditures:

Differences - budget to GAAP:

Sources/Inflows of resources:

Actual amounts "available for appropriation" from budgetary comparison schedule:
purposes.
resource but is not a current year revenue for financial reporting The fund balance at the beginning of the year is a budgetary Transfers in from other funds are inflows of budgetary
resources but are not revenues for finnacial reporting
purposes.

Total revenues as reported in the Statement of Revenues, Expenditures and Changes in Fund Balances - governmental funds.

Total expenditures as reported in the Statement of Revenues, Expenditures and Changes in Fund Balances - governmental funds Uses/Outflows of resources:

Total "charges to appropriation" from budgetary comparison schedule:

Differences - budget to GAAP:

Transfers out to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes. 64 141
City of Cloverdale
Required Supplementary Information
Budgetary Comparison Schedule - Employee Retirement Special Revenue Fund For the year ended June 30, 2022
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
Fund Balance, July 1 $ 1,074,428 $ 1,074,428 $ 1,074,428 $ - Resources (inflows):

Special pension tax 1,559,213 - 1,409,620 (149,593)
Interest - (24,887) - (24,887)
Amounts available for
charges to appropriations 1,074,428 2,633,641 2,459,161 (174,480) Charges to appropriations:

Current:

General government - - 1,550 (1,550)
Transfers out 1,559,213 - 1,586,276 (27,063)
Total charges to appropriations 1,559,213 - 1,587,826 (28,613) Fund Balance, June 30 $ 1,074,428 $ 1,074,428 $ 871,335 $ (203,093) Explanation of Differences between Budgetary Inflows and Outflows and GAAP Revenues and Expenditures:

Sources/inflows of resources:

Actual amounts available for appropriations from budgetary data above: $ 2,459,161 Differences-budget to GAAP:

Beginning fund balances are financial resources for
budgetary purposes, but are not considered as
revenues for financial reporting purposes (1,074,428)
Total revenues as reported in the statement of revenues, expenditures, and changes in fund balances $ 1,384,733
Uses/outflows of resources:

Actual amounts for charges to appropriations from budgetary data above: $ 1,587,826 Differences-budget to GAAP:

Transfers out are a use of financial resources for
budgetary purposes, but are not considered as
exoenditues for financial reporting purposes (1,586,276) Total expenditures as reported in the statement of revenues, expenditures, and changes in fund balances $ 1,550
Budgeted Amounts
65 142
City of Cloverdale
Required Supplementary Information
Schedule of Changes in the City's Net OPEB Liability and Related Ratios Last 10 Fiscal Years
Fiscal year ended June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 Measurement date June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 Total OPEB Liability:

Total OPEB liability, beginning of year $ 2,642,942 $ 2,637,635 $ 2,908,025 $ 3,735,599 $ 3,187,065 Changes recognized for the measurement period:

Service cost 87,202 83,327 94,460 137,334 109,677
Interest 96,501 103,845 104,086 84,881 70,579
Change of benefit terms - - - - -
Differences between expected and actual experience - - - (467,511) - Changes in assumptions (119,854) 158,466 686,216 (238,928) (615,351) Benefit payments (69,156) (75,248) (57,188) (64,309) (58,406) Net change in total OPEB liability (5,307) 270,390 827,574 (548,533) (493,501) Total OPEB liability, end of year 2,637,635 2,908,025 3,735,599 3,187,066 2,693,564 Plan Fiduciary Net Position:

Plan fiduciary net position, beginning of year - - - - - Changes recognized for the measurement period:

Contributions - employer - - - - -
Net investment income - - - - -
Benefit payments - - - - -
Administrative expense - - - - -
Net change in plan fiduciary net position - - - - -
Total plan fiduciary net position, end of year - - - - - Net OPEB Liability, Ending $ 2,637,635 $ 2,908,025 $ 3,735,599 $ 3,187,066 $ 2,693,564 Covered employee payroll $ 1,927,318 $ 1,777,186 $ 1,852,649 $ 1,724,034 $ 1,830,209 City's total OPEB liability as a percentage of covered payroll 136.86% 163.63% 201.60% 184.86% 147.17% Notes:

Plan assets: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement Number 75 to pay related benefits
Benefit changes: There were no changes in fiscal 2022
Changes of assumptions: Discount rate was updated based on municipal bond rate as of the measurement date.

Ten years of data: Fiscal 2018 was the first year of implementation of GASB Statement Number 75.

Additional years of information will be presented as it becomes available. 66 143
City of Cloverdale
Schedule of the City of Cloverdale's Proportionate Share of the Net Pension Liability California Public Employee Retirement System
(Last Ten Fiscal Years)
As of June 30, 2022
Fiscal Year Ended
2015 2016 2017 2018 2019 2020 2021 2022
Measurement Date June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 ########### City's proportion of the net pension liability 0.10217% 0.09968% 0.09865% 0.09759% 0.09901% 0.09961% 0.10069% 0.12523% City's proportionate share of the net pension liability $ 6,357,208 $ 6,842,020 $ 8,536,036 $ 9,677,941 $ 9,540,807 $ 10,207,335 $ 10,955,035 $ 6,773,066 City's covered employee payroll (plan year) $ 3,010,017 $ 3,896,527 $ 3,731,546 $ 3,376,790 $ 3,597,141 $ 3,831,621 $ 3,875,053 $ 4,086,217 City's proportionate share of the net pension liability as a percentage of its covered employee payroll 211.20% 175.59% 228.75% 286.60% 265.23% 266.44% 282.71% 165.75% Plan's fiduciary net position as a percentage of the
total pension liability 79.82% 78.40% 74.06% 73.31% 75.26% 75.26% 75.10% 88.29% Notes to the schedule:

Benefit changes: There were no plan benefit changes in fiscal 2022 Changes in Assumptions: In fiscal 2016, the plan's discount rate was changed from 7.5% to 7.65%. In the 2017 plan year, the discount rate was changed to 7.15%. In the 2018 plan year, changes were made in the inflation rate and demographic.

Last Ten Years: This schedule is intended to show information for 10 years. Fiscal year 2015 was the first year of implementation, and additional years information will be presented as it becomes available. 67 144
Schedule of the City's Employer Pension Plan Contributions California Public Employees Retirement System
(Last Ten Fiscal Years)
As of June 30, 2022
June 30
Contributions for the fiscal year end 2015 2016 2017 2018 2019 2020 2021 2022 Contractually required contribution $ 664,537 $ 768,680 $ 855,293 $ 927,082 $ 1,054,957 $ 1,215,321 $ 1,381,606 $ 1,486,721 Contribution in relation to the
contractually required contribution (664,537) (768,680) (855,293) (927,082) (1,054,957) (1,215,321) (1,381,606) (1,486,721) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - City's covered payroll $ 3,896,527 $ 3,731,546 $ 3,376,790 $ 3,597,141 $ 3,831,021 $ 3,875,053 $ 4,086,217 $ 3,905,844 Contribuitions as a percentage
of covered employee payroll 17.05% 20.60% 25.33% 25.77% 27.54% 31.36% 33.81% 38.06% Notes to the schedule:

Actuarially Determined Contribution Assumptions *
Valuation Date June 30, 2019
Actuarial cost method Entry age normal cost method
Amortization method Varies by date established and source. May be level dollar or level percent of pay ad may include direct rate smoothing Remaining Amortization Periods Differs by employer rate plan but not more than 29 years Asset valuation method Market value of assets
Inflation 2.50%
Salary increases Varies by Entry Age and Service
Discount Rate ** 7.00% (net of administrative expenses) Mortality Derived using CalPERS' Membership Data for all Funds. The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries Last Ten Years: This schedule is intended to show information for 10 years. Additional years information will be presented as it becomes available. 68 145

SUPPLEMENTARY INFORMATION
69 146
City of Cloverdale
Supplementary Information
Combining Balance Sheets - Non-Major Governmental Funds June 30, 2022
Special Revenue
Road Safe Routes SB2
Gas Tax Maintenance Measure M to School Planning Grant
ASSETS
Cash and investments $ - $ 106,637 $ 295,713 $ - $ -
Receivables
Assessments - - - - -
Accounts 7,352 - - - -
Interest - 137 127 - -
Intergovernmental 17,298 31,421 24,656 - -
Loans - - - - -
Prepayments 1,782 - - - -
Total Assets $ 26,432 $ 138,195 $ 320,496 $ - $ -

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 30,617 $ 56,163 $ - $ - $ -
Accrued liabilities 26,558 - - - -
Due other governments - - - - -
Due to other funds - - - - 76,025
Total Liabilities 57,175 56,163 - - 76,025
Fund Balance:

Nonspendable 1,782 - - - -
Restricted for:

Affordable housing - - - - (76,025)
Streets, landscaping and lighting (32,525) 82,032 320,496 - - Thoroughfares - - - - -
Storm drains - - - - -
Police facilities - - - - -
Civic center facilities - - - - -
Corporation yard facilities - - - - -
Public facilities - - - - -
Parks and recreation - - - - -
Parkland and facilities - - - - -
Total Fund Balance (30,743) 82,032 320,496 - (76,025)
Total Liabilities and Fund Balances $ 26,432 $ 138,195 $ 320,496 $ - $ - 70 147
City of Cloverdale
Supplementary Information
Combining Balance Sheets - Non-Major Governmental Funds June 30, 2022
Special Revenue
Transportation Lighting and Community Total
Development Landscaping Inclusionary Development Porterfield Measure M Special Act Grant Vista View Assessment Housing Block Grant Creek Trails PEG Parks Revenue $ - $ - $ 232,157 $ - $ - $ 25,563 $ 15,687 $ 143,958 $ 819,715 - - 1,959 - - - - - 1,959
18,191 - 2,503 - - - - - 28,046
- - 106 6 - 11 8 59 454
- - - - - - 5,526 32,737 111,638
- - - 250,000 - - - - 250,000
- - 1,776 904 - - - - 4,462
$ 18,191 $ - $ 238,501 $ 250,910 $ - $ 25,574 $ 21,221 $ 176,754 $ 1,216,274 $ - $ - $ 12,097 $ - $ - $ 57 $ - $ - $ 98,934
- - 23,281 7,065 - - - - 56,904
- - - - - - - - -
- 112,259 - - - - - - 188,284
- 112,259 35,378 7,065 - 57 - - 344,122
- - 1,776 904 - - - - 4,462
- - - 242,941 - - - - 166,916
- (112,259) 201,347 - - - - - 459,091
18,191 - - - - - - - 18,191
- - - - - - - - -
- - - - - - - - -
- - - - - - 21,221 - 21,221
- - - - - - - - -
- - - - - - - - -
- - - - - 25,517 - 176,754 202,271
- - - - - - - - -
18,191 (112,259) 203,123 243,845 - 25,517 21,221 176,754 872,152 $ 18,191 $ - $ 238,501 $ 250,910 $ - $ 25,574 $ 21,221 $ 176,754 $ 1,216,274 71 148
City of Cloverdale
Supplementary Information
Combining Balance Sheets - Non-Major Governmental Funds June 30, 2022
Capital Projects
Parks, Storms
Housing Drain and Public
Asset Bond Admin Impact Facilities
Forteiture Proceeds Fees Impact Fees
ASSETS
Cash and investments $ 21,044 $ 7,386 $ 942,458 $ 1,077,158 Receivables
Assessments - - - -
Accounts - - - -
Interest 9 13 416 490
Intergovernmental - - - -
Loans - - - -
Prepayments - - - -
Total Assets $ 21,053 $ 7,399 $ 942,874 $ 1,077,648

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ - $ -
Accrued liabilities 38,380 - - -
Due other governments - - - -
Due to other funds - - - -
Total Liabilities 38,380 - - -
Fund Balance:

Nonspendable - - - -
Restricted for:

Affordable housing - 7,399 - -
Streets, landscaping and lighting - - - -
Thoroughfares - - - -
Storm drains - - 77,208 -
Police facilities (17,327) - - 15,036
Civic center facilities - - - 86,711
Corporation yard facilities - - - 418,171
Public facilities - - 36,281 557,730
Parks and recreation - - 829,385 -
Parkland and facilities - - - -
Total Fund Balance (17,327) 7,399 942,874 1,077,648
Total Liabilities and Fund Balances $ 21,053 $ 7,399 $ 942,874 $ 1,077,648 72 149
City of Cloverdale
Supplementary Information
Combining Balance Sheets - Non-Major Governmental Funds June 30, 2022
Capital Projects
Total
Capital Quimby Total Non-Major
Thoroughfare Projects Bond Act Impact Capital Governmental Impact Fees Proceeds Fees Projects Funds
$ 412,950 $ 1,813,914 $ 225,399 $ 4,500,309 $ 5,320,024 - - - - 1,959
- - - - 28,046
182 1,848 115 3,073 3,527
- - - - 111,638
- - - - 250,000
- - - - 4,462
$ 413,132 $ 1,815,762 $ 225,514 $ 4,503,382 $ 5,719,656 $ - $ - $ - $ - $ 98,934
- - - 38,380 95,284
- - - - -
- - - - 188,284
- - - 38,380 382,502
- - - - 4,462
- - - 7,399 174,315
- - - - 459,091
413,132 - - 413,132 431,323
- - - 77,208 77,208
- - - (2,291) (2,291)
- - - 86,711 107,932
- - - 418,171 418,171
- 1,815,762 - 2,409,773 2,409,773
- - - 829,385 1,031,656
- - 225,514 225,514 225,514
413,132 1,815,762 225,514 4,465,002 5,337,154
$ 413,132 $ 1,815,762 $ 225,514 $ 4,503,382 $ 5,719,656 73 150
City of Cloverdale
Supplementary Information
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - For the year ended June 30, 2022 Special Revenue
Road Safe Route SB2
Gas Tax Maintenance Measure M to Schools Planning
REVENUES Grant
Sales taxes $ - $ - $ 101,480 $ - $ -
Intergovernmental 222,281 183,417 - - -
Special assessments - - - - -
Charges for services - - - - -
Interest - 413 251 - -
Miscellaneous - - - - -
Total Revenues 222,281 183,830 101,731 - -

EXPENDITURES
Current:

General government - - - - -
Public safety - - - - -
Landscaping and lighting - - - - -
Streets 358,034 586,882 - - -
Inclusionary housing - - - - 36,428
Capital outlay 83,230 - - - -
Debt service
Principal 3,504 - - - -
Interest 201 - - - -
Total Expenditures 444,969 586,882 - - 36,428
Revenues Over (Under) Expenditures (222,688) (403,052) 101,731 - (36,428)

OTHER FINANCING SOURCES (USES)
Transfers in 382,336 - - 83,024 -
Transfers out - - - - -
Total Other Financing Sources (Uses) 382,336 - - 83,024 - Net change in fund balances 159,648 (403,052) 101,731 83,024 (36,428)

FUND BALANCES
Beginning of year, as previously stated (190,391) 485,084 218,765 (83,024) - Prior period adjustment - - - - (39,597)
Beginning of year, as restated (190,391) 485,084 218,765 (83,024) (39,597) End of year $ (30,743) $ 82,032 $ 320,496 $ - $ (76,025) 74 151
City of Cloverdale
Supplementary Information
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - For the year ended June 30, 2022 Special Revenue
Transportation Lighting and Community Total
Development Landscaping Inclusionary Development Porterfield Measure M Special Act Grant Vista
Views
Assessment Housing Block Grant Creek Trails PEG Parks Revenues $ - $ - $ - $ - $ - $ - $ - $ 134,653 $ 236,133
110,862 345,689 - - 53,768 - - - 916,017
- - 183,001 - - - - - 183,001
- - - - - - 21,719 - 21,719
- - 197 (19,354) - 24 22 99 (18,348)
- - - 5,257 - - - - 5,257
110,862 345,689 183,198 (14,097) 53,768 24 21,741 134,752 1,343,779 - - - - - - 29,526 - 29,526
- - - - 2,861 - - 37,822 40,683
- - 182,352 - - - - - 182,352
- - - - - - - - 944,916
- - - 97,268 - - - - 133,696
- - - - - 1,689 - - 84,919
- - - - - - - - 3,504
- - - - - - - - 201
- - 182,352 97,268 2,861 1,689 29,526 37,822 1,419,797
110,862 345,689 846 (111,365) 50,907 (1,665) (7,785) 96,930 (76,018) - - 31,711 23,853 5,078 1,690 - - 527,692
(92,671) - - - - - - - (92,671)
(92,671) - 31,711 23,853 5,078 1,690 - - 435,021
18,191 345,689 32,557 (87,512) 55,985 25 (7,785) 96,930 359,003 - (457,948) 170,566 331,357 (55,985) 25,492 29,006 79,824 552,746 - - - - - - - - (39,597)
- (457,948) 170,566 331,357 (55,985) 25,492 29,006 79,824 513,149 $ 18,191 $ (112,259) $ 203,123 $ 243,845 $ - $ 25,517 $ 21,221 $ 176,754 $ 872,152 75 152
City of Cloverdale
Supplementary Information
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - For the year ended June 30, 2022 Capital Projects
Parks, Storm
Housing Drain and Public
Asset Bond Admin Facilities
Forfeiture Proceeds Impact Fees Impact Fees

REVENUES
Sales taxes $ - $ - $ - $ -
Intergovernmental - - - -
Special assessments - - - -
Charges for services - - 4,542 2,117
Interest 19 (32,284) 900 (44,160)
Miscellaneous - - . -
Total Revenues 19 (32,284) 5,442 (42,043)

EXPENDITURES
Current:

General government - 1,937 - -
Public safety - - - -
Landscaping and lighting - - - -
Streets - - - -
Inclusionary housing - - - -
Capital outlay - - - 57,808
Debt service - - - -
Principal - - - -
Interest - - - -
Total Expenditures - 1,937 - 57,808
Revenues Over (Under) Expenditures 19 (34,221) 5,442- (99,851)

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net change in fund balances 19 (34,221) 5,442- (99,851)

FUND BALANCES
Beginning of year (17,346) 41,620 937,432 1,177,499
End of year $ (17,327) $ 7,399 $ 942,874$- $ 1,077,648
76 153
City of Cloverdale
Supplementary Information
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - For the year ended June 30, 2022 Capital Projects
Total
Capital Total Non-Major
Thoroughfare Projects Bond Quimby Act Capital Governmental Impact Fees Proceeds Impact Fees Projects Funds
$ - $ - $ - $ - $ 236,133
- - - - 916,017
- - - - 183,001
754 - - 7,413 29,132
1,486 (61,069) 255 (134,853) (153,201)
- - - - 5,257
2,240 (61,069) 255 (127,440) 1,216,339
- 3,875 - 5,812 35,338
- - - - 40,683
- - - - 182,352
- - - - 944,916
- - - - 133,696
- - 11,574 69,382 154,301
- - - - -
- - - - 3,504
- - - - 201
- 3,875 11,574 75,194 1,494,991
- 2,240 (64,944) (11,319) (202,634) (278,652)
- - - - 527,692
- (156,255) (34,331) (190,586) (283,257)
- (156,255) (34,331) (190,586) 244,435
- 2,240 (221,199) (45,650) (393,220) (34,217)
410,892 2,036,961 271,164 4,858,222 5,410,968
$- $ 413,132 $ 1,815,762 $ 225,514 $ 4,465,002 $ 5,376,751 77 154
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78 155
2700 Ygnacio Valley Road, Ste 270
Walnut Creek, CA 94598
(925) 932-3860 tel
(925) 476-9930 efax
INDEPENDENT AUDITORS’ REPORT
To the City Council
City of Cloverdale, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Cloverdale, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Cloverdale, California’s basic financial statements as listed in the table of contents.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Page 1 of 4 ends

Cloverdale City CouncilApril 12, 2023

Cloverdale City Council
April 12, 2023